Austin Engineering’s Kewdale facility up for grabs

Savills Australia welcomes 3.2-hectare industrial site in Perth’s east to market

The home of ASX-listed Austin Engineering in Perth’s Kewdale Industrial Precinct has come to market with expectations of circa $14-15 million.

The 3.2-hectare site with 6,622sq m of office/workshop space at 100 Chisholm Crescent is undergoing extensive upgrades to modernise the facility and improve functionality.

Savills Industrial's James Condon has been appointed to sell the property in conjunction with Knight Frank’s Jarrad Grierson via a four-week offers-to-purchase campaign.

With Austin Engineering signing a new eight-year lease for the premises, Mr Condon said investors were likely to compete for the opportunity to own the refurbished asset.

“With more than $1 million in annual rental income and fixed rental increases, 100 Chisholm Crescent will be very well received by the Perth investor market,” he said.

“The tenant has been in the area for more than 20 years and has just committed to an extension to the lease of their second site nearby at 2 Draper Place, Kewdale, for another five years, which they have occupied for more than 10 years.”

Mr Grierson said he expected significant interest from local, eastern-states and overseas investors.

“Increased investor confidence in Perth’s industrial market has resulted in an increase in demand-led sales activity,” he said.

“The property at 100 Chisholm Crescent benefits from a blue-chip industrial location near major infrastructure, significant and valuable improvements, and a strong lease covenant, which will be of interest to buyers across the board.”

Mr Condon said Austin Engineering’s signing of the two new leases showed commitment to the ongoing evolution of the Kewdale Industrial Precinct.

“This is a reassuring move for an ASX-listed company to have a continued presence in the mining sector and Perth’s commercial property market,” he said.

Chisholm Crescent is within close proximity of the Kewdale intermodal facility and the Perth International Airport. The site is also strategically positioned close to Perth’s major arterial road network, and is about 12 kilometres from the CBD.

“Directly adjoining Roe Highway, a key arterial road for Perth’s industrial network, the facility grants easy access to Perth’s north and surrounding suburbs,” Mr Condon said.

The high-quality office/workshop has a heavy-duty support structure to cater for a variety of gantry cranes, including two 25-tonne, three 16-tonne and one 10-tonne crane. The facility also includes an ancillary workshop of 890sq m.