This article is from the Australian Property Journal archive
THE Partners Group and Realterm have expanded their joint venture with the acquisition of a second industrial outdoor storage (IOS) facility in Sydney for $28 million.
Located at 311 The Horsley Drive, Fairfield the 28,760sqm IOS facility comprises a 3,609sqm warehouse and around 1.7-hectares of secure storage space.
Realterm worked with CBRE’s Elijah Shakir on the acquisition, which at $28 million, came in below land value.
“The property’s location is highly advantageous for transportation and logistics operations and sits in an area of Sydney currently characterized by its limited supply and low vacancy offering a rare and coveted opportunity,” said Toni Ryan, fund manager Australia at Realterm.
“We look forward to our continued expansion in Australia and are committed to broadening our presence further in this active and highly sought after market.”
The facility’s main warehouse has a medium internal clearance with seven raised docks and one level access point in addition to office and amenities, plus a workshop/wash bay located along the southeast boundary of the property.
“The acquisition is a great example of how we work closely with our local agent network to secure off-market opportunities, a strategy that is enabling us to secure these IOS sites of scale in tightly held, infill markets,” said Charlotte Brabant, head of investments, Australia at Realterm.
The property’s location in the central west also makes it easily accessible to the M4 and M5 motorways, connecting it to both the broader Sydney market and Port Botany.
“We are pleased to add a high-quality, strategically located asset into our portfolio, recognizing its significant value-add potential,” said John Dixon, member of management, private real estate Asia at Partners Group.
This is the joint venture’s second Australian transaction, following the acquisition of a 41,490sqm IOS facility at 77 Governor Macquarie Drive, Chipping Norton.
“Industrial outdoor storage (IOS) represents a unique and emerging last mile urban logistics strategy in which we have strong thematic conviction, and we will continue to seek opportunities to expand in Australia,” said Joe Chien, managing director of private real estate Asia at Partners Group.
Sydney’s prime net effective rents have sat stable since late-2023, with vacancies up 9% to circa 250,000sqm, which is 46% under the historical average. While new supply in Sydney is forecast to hit 866,000sqm, with around 343,800sqm delivered in 2024 so far, according to Knight Frank.
Time and Place is expecting more than $30 million for an acre of industrial land in Sydney’s highly sought-after Mascot, while one of the country’s first-completed multi-level industrial warehouses has been put up for lease, just a few weeks after being acquired by Cabot Properties for $137.6 million.
