The City of Subiaco has sold an industrial property in Kewdale, the first site it bought outside of its local government area, for $19 million.
The City of Subiaco has sold an industrial property in Kewdale, the first site it bought outside of its local government area, for $19 million.
Kewdale Central WA bought the property on 100 Chisholm Crescent, which is leased to Austin Engineering, in July.
Australian Securities and Investments Commission data shows Kewdale Central WA is owned by South Perth-based property investment company Session Equity.
The city bought the Kewdale asset for $14.5 million in mid-2018, reportedly the first property it acquired outside of Subiaco.
It includes land, a manufacturing workshop and associated office building on the 3.25-hectare lot.
The property had a market value of $18.6 million, as revealed from the city's public notice of the transaction.
At the time, then-Subiaco mayor Penny Taylor reportedly claimed the investment was a strategic move to increase the city’s yield.
A city document shows the property was acquired using reserve funds from the Capital Investment Reserve with an existing tenant on an eight-year lease to 2026.
Lease income from the property was to be transferred to the city’s investment income reserve in accordance with the council's policy.
JLL was the agent over the deal, which was dealt off-market.
The property fetched a little over $1 million rent per year, according to the agents' advertisement.
Discussions on selling the Kewdale property started last year, with the city council voting to advertise a major land transaction of the site in November.
City councillor Russell Jones said the Kewdale property was a good candidate for disposal.
“With the recent adoption of the new investment property, the city is able to invest in assets other than just real estate,” he said at the November council meeting.
The city has slowly been adjusting its mix of commercial properties and cash deposits over time to diversify its investment portfolio, according to its business plan over the Kewdale sale.
The Chisholm Crescent asset was one of two properties the city wanted to sell in the 2024-25 financial year, the other being the former Subiaco operations centre on 2 Upham Street, Jolimont.
The sale proceeds from the two property deals would be reinvested according to the city’s long-term investment framework, the business plan shows.
Subiaco council has been discussing the sale of the Kewdale property at meetings this year, but discussions have been kept confidential.
