Shenton Quarter is Zest’s seven-year warehouse lease at 18 Abbotts Road, recorded as ROU asset FA-004 with a $456,000 liability at commencement and $128,400 annual rent subject to CPI review. The journals below show interest, principal, and depreciation for January 2025, with a forecast outflow of about $21,400 per month. Legally, note the make-good obligation, assignment restrictions, and permitted use limited to food manufacturing.
| JE | Date | Account | Debit | Credit |
|---|---|---|---|---|
| J14 | 1 Jul 23 | 1550 ROU asset | 456,000 | — |
| J14 | 1 Jul 23 | 2600 Lease liability | — | 456,000 |
| J16 | 31 Jan 25 | 6200 Interest expense | 2,840 | — |
| J16 | 31 Jan 25 | 2600 Lease liability | — | 2,840 |
| J17 | 31 Jan 25 | 6100 Depreciation | 5,430 | — |
| J17 | 31 Jan 25 | 1550 ROU asset | — | 5,430 |
| Period | Rent | Interest | Principal | Total outflow |
|---|---|---|---|---|
| Feb 2025 | 10,700 | 2,840 | 7,860 | 21,400 |
| Mar 2025 | 10,700 | 2,812 | 7,888 | 21,400 |
| Apr 2025 | 10,700 | 2,783 | 7,917 | 21,400 |
| May 2025 | 10,700 | 2,754 | 7,946 | 21,400 |
| Jun 2025 | 10,700 | 2,725 | 7,975 | 21,400 |
PV of remaining liability · $412,600 at 6.2% incremental rate
| Document type | Reference | Status |
|---|---|---|
| Lease agreements | LEASE-SHENTON-2023.pdf | Executed · 1 Jul 2023 |
| Tenancy invoices | INV-RENT-2025-01.pdf | Paid · Jan 2025 |
| Maintenance schedule | WO-SHENTON-Q1-2025.pdf | Scheduled · Q1 2025 |
Perth western suburbs industrial rents have softened slightly, and Zest’s Shenton Quarter rate sits about 6% above comparable warehouse benchmarks, giving moderate leverage ahead of the July 2025 CPI review. Board history is mixed: an 8% reduction was secured on the cold storage lease in 2022, but the board accepted last year’s Shenton CPI uplift without a formal counter-offer. Overall renegotiation appetite is amber at 62 out of 100; the recommended path is a structured letter led by Tim Walsh with legal review from Priya Shah before the next rent review date.
Comparable rent per sqm (warehouse · western suburbs)
Source: CBRE Perth Industrial Pulse · refreshed 12 Jan 2025
Renegotiation appetite index
62 / 100 · Amber
Prior landlord relationships; led Malaga win 2022. Strong on relationship tone and timing.
Lease clause analysis and CPI cap strategy. Reviews all formal correspondence.
ROU modelling and walk-away thresholds. Ensures finance case supports any offer.
Shenton Park Industrial Pty Ltd
PO Box 412, Nedlands WA 6909
Dear Property Manager,
Re: Lease LEASE-SHENTON-2023 · 18 Abbotts Road, Shenton Park
We write ahead of the July 2025 rent review for the above premises. Zest Pty Ltd values the long-term partnership at Shenton Quarter and wishes to discuss rent alignment with current western suburbs industrial benchmarks.
Our review indicates comparable warehouse rents in the catchment have softened modestly over the past twelve months. We would welcome a meeting to explore a revised rate structure that reflects market conditions while preserving the landlord’s occupancy certainty.
Yours sincerely,
Tim Walsh
Managing Director, Zest Pty Ltd
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