A private WA owner operator has secured $8.6 million for the sale of the Cockburn Central Self Storage centre in Cockburn, around eight kilometers south of Fremantle.
The deal was negotiated by JLL’s Sales and Investment Director, Sean Flynn and Senior Director, Head of Sales and Investments, Nigel Freshwater who sold the property to Abacus Property Group.
Cockburn Central Self Storage is a modern facility with approximately 500 units spanning an enclosed storage area of around 5,000sqm. The development sits on an extensive 1.679ha site which currently supports a wide open hardstand area of around 1ha, being utilised for vehicle, boat and caravan storage.
Mr Flynn noted that the campaign was a great success, generating over 90 enquires and multiple bids. “The standout feature of this campaign was the fact that despite having to close the campaign as WA entered partial lockdown, we were able to undertake a shortlist process, select a preferred bidder, negotiate a sale contract and run a successful due diligence entirely working from home.
“We credit both our seller and Abacus Property Group with showing patience and resilience during this process, making this successful transaction even more satisfying.”
Abacus Property Group is one of the largest owners of self-storage facilities across Australia and New Zealand. Over the last 18 months, Abacus has entered the Perth market with the acquisition of 9 self-storage facilities, seeing strong demand and growth potential in selected areas.
The self-storage sector has proven to be in demand from investors in 2020 to date. Despite challenging economic conditions due to the COVID-19 pandemic, the self-storage sector remains resilient. JLL Research data shows WA occupancy rates for the self-storage sector at 77.5% as at Aug-20, up from 74.6% in Jun-20. Rents have also remained stable over the last 12 months.
WA self-storage occupancy – Source JLL Research
JLL’s Strategic Research Manager, Ronak Bhimjiani said, “Demand for self-storage is typically linked to population growth. The current economic disruption caused by COVID-19 will undoubtedly lead to lower population growth in the short-term. However, demand for self-storage is currently being supported by households working from home, therefore needing more space and increased demand from businesses that have shifted their operations online.”
Mr Freshwater believes that Cockburn Central is proving to be a very strategic destination, not only holding strong self-storage credentials, but also offering flexible underlying zoning which will in the long term support a mix of retail, commercial and medium to high density residential development.
“We weren’t surprised by the level of investor interest we received during the campaign. The property really does offer a very dynamic future.” Mr Freshwater noted.
“We also anticipate that population growth will return once the global pandemic subsides and borders re-open, which should further boost demand for self-storage facilities going forward.”
