Lendlease intends to build a $19.9 million industrial building on a recently acquired location in Perth, Western Australia.
Australian Prime Property Fund (APPF), a Lendlease managed industrial fund, has purchased 45 Boom Street, Gnangara, WA.
The 1.856 hectares is part of the larger Northlink Industrial Park and has been established as a core logistics precinct in Perth’s industrial market.
An industrial building with a total area of 12,190 square metres, which includes an office component of 700 square metres over two levels, will be built on the land.
It will be ]tenanted by Iron Mountain Group Australia, which has agreed to enter a 15-year lease.
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Industrial property developers Gibb Group and Linc Property are jointly developing the facility, funded by APPF Industrial.
The move rings the fund’s portfolio to a total of 34 assets.
APPF Industrial Fund Manager Jonathan Harrison said the acquisition is the fund’s second investment in Western Australia and further diversifies its portfolio.
“The location north of Perth is ideally suited to logistics with excellent transport links to the Perth CBD and outer suburbs. Overall economic conditions for the region are positive and this is a city that we believe will see solid growth,” Harrison said.
“The Perth industrial market, which we believe is in the early stages of recovery, has the potential to deliver strong relative performance for the fund.”
Gibb Group Managing Director Matthew Gibb said the development marked its first collaboration with Lendlease but is the second facility for Iron Mountain.
Linc Property Managing Director Ben Lisle said the sale of the land and Iron Mountain facility marks the completion of Northlink Industrial Park, which has been one of Linc property’s most successful industrial estate developments to date.