A Perth site bordering the CBD and ripe for a mixed-use development has sold  following strong buyer demand during the sale campaign. 

The 8,722sqm property at 533-545 Newcastle Street in West Perth currently consists of 10 lots occupied by a mix of tenancies including warehouses, offices and yard space with a total net lettable  area of 6,095sq m. 

It is positioned in the City of Vincent’s ‘Pickle District Planning Scheme’, just down the road from the  Sydney Charles Quarter development, which will include a hotel, food and beverage options and retail  space. 

The asset was purchased by a private developer from Australia’s east coast for $14.5 million in a deal  negotiated by Tony Delich and Cory Dell’Olio of Knight Frank. 

Mr Dell’Olio said sale campaign for the property resulted in more than 60 offers and multiple offers,  with interest coming from a wide range of buyers. 

“The successful sales result is indicative of the demand for quality development sites in Perth, with this  site being of high interest to both local and interstate developers,” he said. 

“We are finding high-density and mixed-use sites in prominent and affluent locations in Perth are of particular interest to developers, as they can see the value proposition, especially compared to land  values for similar sites in Australia’s east coast cities. 

“This West Perth site was sought after largely due to its location so close to the city, being right on the  border of the CBD, close to transport options and in an area that is being gentrified.” 

The Newcastle Street property is a corner site, with 147 metres of frontage to Cleaver Street, and sits  on the high side of the road, with uninterrupted views to the city. 

The current zoning is commercial, but the site is also situated within the Pickle District Planning  Scheme, which provides further flexibility with the potential for a mixed-use development of up to  seven storeys, however it is believed that approvals could extend to 14 storeys. 

The property was sold with development approval in place for a four-storey commercial project, which  included a large hardware store, multiple retail tenancies and an undercroft car park of 289 bays but  there are no imminent plans for a redevelopment following the sale. 

Mr Delich said the buyer would hold the property in the short term with a significant current rental  return, with the intention of redeveloping in the long term.

“For now, the site has strong holding income of around $300,000 per year from the current tenants,”  he said. 

“With the Sydney Charles Quarter development being just down the road, the area will be transformed  and revitalised in the future, which will create an exciting opportunity for a successful mixed-use  development at 533-545 Newcastle Street. 

“The site has many possible uses including light industrial, retail and residential.”

Related Readings

Huge development site West Perth for sale - Knight Frank | The Industrialist

Part of former Coca-Cola Amatil site in Adelaide sold - Knight Frank & Leedwell Property | The Industrialist

Two Melbourne industrial facilities sold for more than $13.5m - Knight Frank | The Industrialist

Brand new high-exposure warehouses in Melbourne’s west for sale - Knight Frank & Savills