Metal recycling facilities for sale by WMR receivers

Metal recycling facilities for sale by WMR receivers
Metal recycling facilities for sale by WMR receivers

An industrial property portfolio once held by Doug Rowe’s WMR Group (Waswaste Metal Retrievers Pty Ltd) has been listed for sale on behalf of receivers. 

All the properties are leased by scrap metal recycler CMA Group, of which Rowe was managing director until he resigned in May 2010. 

In July 2010, Rowe and WMR were sued by CMA Group over allegations that he breached the Corporations Act and Trade Practices Act while managing director of CMA Group. 

The litigation was settled in December 2010, with Rowe agreeing to transfer shares and make payments to CMA valued in excess of $6 million.

The settlement included the termination of lease agreements for two properties leased to CMA by WMR and the variation of one lease for a NSW property. The settlement was on the basis of no admissions by Rowe or WMR. 

CBRE’s Graham Hemingway and Rory Hilton will co-ordinate the campaign on behalf of receivers and managers Ferrier Hodgson. 

The portfolio comprises three properties in Victoria, two in New South Wales, two in Tasmania and one each in Western Australia and South Australia. 

The portfolio comprises six leased assets and three properties that are to be sold with vacant possession. The leased assets are predominantly used as metal recycling facilities, and all are leased to the CMA Group. 

The properties are to be sold individually or in one line. 

They include a two-hectare commercial site at 338 Gnangara Road in Landsdale, a northern suburb of Perth. The property was purchased by WMR in December 2007 for $7.98 million. 

The NSW properties up for sale are in Penrith and consist of a 3,500-square-metre warehouse at 52 Power Street, which was purchased by WMR for $1.7 million in March 2007, and a 15,000-square-metre industrial building at 46 Charles Street, which was bought by WMR for $3.8 million in July 2006. 

Hemingway says the strength of the CMA tenancy covenant will likely be a significant drawcard for investors. 

“The strong lease profile and the price range of the assets will be of significant appeal to the private investor market, with the individual assets valued at between circa $500,000 and $11 million,” he says. 

The vacant sites are expected to generate interest from both owner-occupiers and developers. 

All but one of the properties will be offered via expressions of interest, closing November 17, 2011. 

The smallest asset, located in Bayswater North, Victoria, will be offered for sale at an on-site auction on November 17.

Other properties up for sale include: 

  • Victoria - 73-29 Heatherdale Road, Ringwood; Unit 3, 81 – 85 Heatherdale Road, Ringwood and 242 Canterbury Road, Bayswater.
  • Tasmania - 256 George Town Road, Rocherlea and 25 Masse Green Drive, Burnie.
  • South Australia – 16-46 Johannson Road, Wingfield

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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