Ascot Capital executes $25 million counter-cyclical acquisition
WA-based property developer and syndicator Ascot Capital has purchased a three-asset Perth industrial portfolio in a counter-cyclical, off-market deal for $25.5 million.
Colliers International’s Raj Singh, who closed the Ascot Capital purchase on a 7.5 per cent yield, said he was seeing a lot more interests in leased industrial properties in Perth.
The vendor of the three properties was a private investor.
All three properties are in the light industrial suburb of Wangara, north of Perth, and have been earmarked for a new syndication fund.
The purchase marks the developer’s return to investments in Western Australia after several years. Its past seven acquisitions in the past 18 months were interstate.
The biggest property in the portfolio is the 3.5-hectare industrial facility at 23 Destiny Way, leased to ASX-listed labour services and equipment hire company Global Construction Services Limited. That property sold for $15.1 million.
The other two properties are 50 Triumph Avenue, a 7599sq m property leased to i-Tech Services, and 56 Triumph Avenue, a 5835sq m property leased to Glass Processing Australia.
They sold for $6.65 million and $3.75 million respectively.
The downturn in the mining industry in WA has forced many investors to turn to the east coast, which is experiencing a property boom both in commercial and residential.
But life is returning to the western capital, especially investors targeting a counter-cyclical strategy.
Property fund manager Primewest just completed its purchase of Perth’s Quadrant building for $175 million, acting on a mandate for Singapore sovereign fund GIC, also a counter-cyclical strategy missive.
Primewest, led by John Bond, the son of Alan Bond, said it has been looking for counter-cyclical opportunities across Perth and Brisbane.
On the residential front, groups like Far East Consortium are marching on with more residential development despite the slump in housing prices.
It is developing apartments at the Metropolitan Redevelopment Authority’s Elizabeth Quay and recently scooped up three more lots at the Perth City Link precinct next to the Perth Arena to 1.25 hectares.
It is planning a 4-star Dorsett Hotel and a circa-$200 million, 300-apartment tower on the sites.
