Land sales have started at one of WA’s most valuable parcels of privately owned industrial land, the 39ha former Swan Brewery site in Canning Vale.
The land is being developed by industrial specialist Linc Property for Swan Brewery owner Lion, one of Australasia’s biggest food and beverage companies.
Canning Vale’s central location makes it a much-prized industrial base and selling agent Raine & Horne Commercial director Anthony Vulinovich said close to 40 blocks of land, accounting for almost all of stages one and two, have been purchased in off-market deals.
“While demolition work was under way we undertook off-market discussions with a number of potential buyers,” Mr Vulinovich said. “Initially the intention was to deal on stage one only but the response was so strong the majority of stage one and two were sold”.
Lion closed the brewery operations at Canning Vale last year and relocated the production of WA beer brands interstate, ending Swan Brewery’s 155 years of brewing in WA.
Perth has a well-documented shortage of big industrial land parcels in central locations and the Canning Vale industrial area is close to business centres, a nearby workforce and is cross-crossed by major arterial roads connecting it to Fremantle Port, Perth’s airports and regional centres.
The Swan Brewery Industrial Estate subdivision will deliver lots from 1200sqm to 3ha.
Mr Vulinovich said early buyers had taken advantage of the chance to obtain custom-designed premises for lease or occupation in a location in which there had been a shortage of supply in the past decade.
“The land sale represents about one-tenth of Canning Vale’s industrial land,” he said.
“The land prices are reasonable , falling at $400 to $475/sqm and offer a strong incentive to buyers to commit off-the-plan.
“If you compare it to other prime commercial-industrial areas such as Balcatta, at $700/sqm and more, Osborne Park $1000/sqm and Welshpool $550/sqm, we offer excellent value and room for growth.”
Titles are expected in April for stages one and two and in June or July for stage three.
Linc Property director Ben Lisle said the historic lack of supply in Canning Vale had generated interest from builders, developers, investors and owner occupiers. “We anticipate the subdivision will accommodate a similar range of businesses to those in the surrounding Canning Vale area with an emphasis on warehousing and distribution,” Mr Lisle said.
Mr Vulinovich said the former Swan Brewery land would satisfy much of the demand for newly constructed industrial space.
“We expect most (wanting to) occupy or develop for lease or sale will be very motivated,” he said. “Where there is not available land the industry has to rely on secondary stock but that may not suit tenants”.
The West Australian – September 24, 2014
Marissa Lague, Commercial Property Editor