A highly secure industrial property in Perth, where cocaine is legally manufactured for medical procedures, has been sold in a multi-million dollar deal. The sale of the more than 8000 square metre site in Perth's northern suburbs, near the CBD, was finalised after a competitive sales campaign earlier this year.
Multi-Million Dollar Deal and Secure Tenant
The property transaction reached a sum well into the eight digits, though the final price and the identity of the new owner have not been publicly disclosed. Settlement is due to occur early next year. The site last changed hands nearly 15 years ago for approximately $15 million.
Critically, the existing pharmaceutical company tenant, which holds the licence to produce liquid cocaine and other restricted medicines, will remain in place. A spokesperson for the Therapeutic Goods Administration confirmed the company's operating licence is unaffected by the property sale.
For security reasons, the specific tenant is not being named. The new owner is set to receive a substantial net rental income exceeding $1.5 million annually, with all property outgoings covered by the long-term tenant.
The Medical Role of Legal Cocaine Production
The facility plays a vital role in Western Australia's healthcare system. One of its key products is liquid cocaine, which is used in major ear, nose, and throat surgeries performed in WA hospitals.
The drug's unique property of reducing blood flow is crucial for surgeons. When operating on delicate oral, nasal, or laryngeal tissue, which is rich in blood vessels, the application of cocaine significantly lowers the risk of a patient bleeding out during the procedure.
Insurance Hurdles and Security Concerns
The sale process revealed the unique risks associated with the property. The West Australian understands that at least one overseas investor, a Malaysian national, was keen to make an offer but could not secure insurance at a "reasonable" price.
Insurers were reportedly concerned about the potential for organised crime groups to target the site. The fears centred on possible attempts to steal the liquid cocaine or other highly restricted medicines, which could lead to damage to buildings or harm to workers on the premises.
The sales campaign attracted multiple offers. One prospective buyer initially had a bid accepted shortly after the campaign launched, but their financing arrangement fell through. A subsequent offer from another party was later accepted and has successfully cleared all financing hurdles.
