High-security Perth property where cocaine is legally produced is sold for an undisclosed amount

A secretive industrial property where cocaine in liquid form is manufactured for medical use has been snapped up for a sum well into the eight digits. The property in Perth’s northern suburbs near the CBD spans more than 8000 square metres and was put up for sale during the first quarter of this year. One prospective buyer had a bid accepted shortly after sales campaign began, but their financing fell through. The West Australian understands an offer from a different party was recently accepted and has now cleared financing hurdles. Multiple other offers were understood to be left on the table. Settlement for the sale is due early next year, with the site’s price tag or new owner yet to be revealed. It last sold nearly 15 years ago for about $15 million to a pharmaceutical company, who will stay on as the site’s tenant. The West has chosen not to name the tenant for security reasons. The property’s new owner will receive more than $1.5m of net rental income a year, with all outgoings covered by the tenant. A spokesperson from the Therapeutic Goods Administration confirmed that the pharmaceutical company’s operating licence would be unaffected by the sale. One of the products manufactured on the site is liquid cocaine. It is used in WA hospitals for major ear, nose and throat surgeries. Cocaine reduces blood flow, meaning there is less risk a patient will bleed out when a surgeon slices into oral, nasal or laryngeal tissue, which are laden with delicate blood vessels. The West is aware of at least one overseas investor, a Malaysian national, who was keen to put in an offer for the property but could not find insurance for a “reasonable” price. Insurers were apparently worried that organised crime groups could damage buildings and harm workers on site while attempting to steal liquid cocaine or other highly restricted medicines.