Storage Facility in Cockburn Sells for $8.6m
Abacus Property Group secures a prominent Perth self-storage facility.
PERTH, 29 SEPTEMBER 2020 – On behalf of a WA private owner operator, JLL is pleased to announce the sale of Cockburn Central Self Storage for $8,600,000. 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.
JLL said the sale campaign generated over 90 enquires and multiple bids.
Sean Flynn said, “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,” said Mr Flynn.
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.”
Nigel Freshwater said, “Aside from its undoubtedly strong self-storage credentials, Cockburn Central is a very strategic land holding with flexible underlying zoning which will in the long term support a mix of retail, commercial and medium to high density residential development, so we weren’t surprised by the level of investor interest we received during the campaign. The property really does offer a very dynamic future.
“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,” said Mr Freshwater.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion in 2019, operations in over 80 countries and a global workforce of nearly 93,000 as of June 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.