This article is from the Australian Property Journal archive
GREYSTAR Real Estate Partners have entered into Australia’s industrial sector with a big splash, with five strategic acquisitions across Sydney, Melbourne and Brisbane worth over $500 million combined.
A world leader in the investment, development and management of real estate, Greystar have dipped its toes into the Australian market after beginning its industrial platform in the US in 2020.
The market leader in Build-to-Rent opportunities, Greystar have used a few sites in Australia as strategic long-term investments with three in Brisbane and one each in Sydney and Melbourne.
In Sydney, the real estate partners have completed the acquisition of its largest project just last month. They settled the details to obtain a 5.1ha brownfield site in South Granville in Sydney’s Central West, while also negotiating the contracts for a 2.1ha brownfield site in Melbourne’s West Footscray.
The South Granville site is located at 26 Ferndell Street, and is in close proximity to both M4 and M5 motorways. It is also just over 30 minutes away from the Sydney Airport.
Greystar’s intention for the site is to model it into a modern logistics facility for modern users in a location that is desirable for many employees.
The site in West Footscray is located at 36-38 Roberts Street – approximately a mere 8 km from Melbourne’s CBD. The $23.1 million deal is expected to settle in December. The site is improved by a 7,000sqm warehouse and surplus land set to form 7,600 sqm of warehousing space. Cadence Property Group sold the property with head of investment management Tony Mount, pleased with the deal.
“We are attracted to well-located properties with a variety of options to enhance returns. We have the internal capability to swiftly adjust our strategy at Cadence in order to achieve a strong result for our investors. This was certainly the case for our Robert Street, West Footscray site,” Mount said.
Moving into Brisbane’s industrial property market and there are three projects that Greystar have set their sights on for redevelopment. 483-485 Zillmere Rd, Zillmere; 971 Fairfield Rd, Yeerongpilly and 175 Dutton Rd, Pinkenba are all surrounded by important Brisbane infrastructure and plans have been approved for their makeover.
While it’s Greystar’s first foray into the industrial market in Australia, it’s not their first experience building developments for Australia. In early October, they commenced construction on a $500m Build-to-Rent development in South Yarra.
Greystar have seen significant growth of their industrial platform in just two years – their industrial division contains 25 development offices. They also have $2.1 billion AUD in developments currently in progress.
