This article is from the Australian Property Journal archive
CENTURIA is looking to offload the BlueScope Steel distribution centre in western Sydney’s South Granville, in a tightly-held market that has seen few infill sites available recently.
The 15,302 sqm facility is on a 26,740 sqm site at 13 Ferndell Street and is being marketed via expressions of interest through LJ Hooker Commercial’s Marcel Elias and Colliers International’s Gavin Bishop and Sean Thomson, closing October 2018.
Expectations are for the property to command a figure in the mid-$20 million.
ASX-listed BlueScope Steel pays around $1.5 million per annum net in rent, and has a seven-year option after the current lease expiry.
Elias said Centuria had recognised the shortage of infill assets on the market, and are looking to realise market value with an ASX-listed tenant attached.
“The facility at 13 Ferndell Street will be one of the few premier infill industrial sites listed for sale in Australia this year in terms of scale, quality and proximity to arterial road networks.”
It is located close to the Hume Highway and M4 Western Motorway.
Some 65,000sqm of industrial property has being withdrawn over the last 12 months for residential use through Sydney’s central-west and south, in a period that has seen industrial markets well supported by economic factors, and the evolution of e-commerce and logistics.
“Given the low interest rate environment and robust economic fundamentals in Australia, accompanied by the weight of capital chasing industrial investment product, significant demand for this asset is anticipated,” Bishop said. “Investors have rarely been presented with the opportunity to acquire a Sydney industrial asset of scale, within the tightly held market.”
Strong demand for industrial investments through Victoria saw transaction volumes jump by 43% in 2017, while New South Wales sales were down 18% due to limited availability.
“Industrial remains an attractive asset class for investors. Consequently, the lack of quality industrial premises brought to market has created investor competition, driving down yields over the last year.”
Last month, Dexus acquired the nearby 10-hectare brownfield site at 54 Ferndell Street for $61.5 million, with plans to develop more than 54,000 sqm across four buildings with varying tenancy sizes.
Australian Property Journal
