Fund Manager Mair Property Funds (MPF) has sold its 3500m2 warehouse in Wangara, WA to leading medicinal cannabis company, AusCann Group Holdings Limited, for $5.25 million.
The property, located on 11 Excellence drive in Wangara, was acquired by Mair Property Funds in 2012 as part of a multi-asset commercial property trust, MPF Property Trust 1, and sold to AusCann via direct sale at a rate of $1,579 per m2.
Managing Director of Mair Property Funds, David Ellwood, said the sale represented an excellent price for the property and was significantly above its last valuation.
"On behalf of our investors, we're very happy with the price achieved for the sale and the fact we were able to leverage our network to assist an owner occupier in locating and acquiring a modern warehouse that was well suited to their future needs."
"We believe the sale represents a good result for both parties, providing both a strong exit position for the Trust and an opportunity for the new owners to expand their existing business," he said.
The sale will see the warehouse become the site of a new state-of-the-art research and development facility as part of AusCann's pharmaceutical development program, with the company set to invest further capital of up to $6 million to customise the site to purpose.
Mr Ellwood said the property's location and visibility from the high volume traffic of Hartman drive is well suited to the needs of new industries and emerging markets.
"The modern tilt panel warehouse complex benefits from a number of modern aspects including well-specified offices, good truss heights and full drive-around access within a secure self-contained facility, making it easily adaptable to the needs of the new owners."
"This is always an important aspect in our initial selection criteria, and we are constantly monitoring the market to identify emerging trends and future uses that may impact the building design and physical needs of prospective occupiers and drive future demand within the industrial space," he said.
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