This article is from the Australian Property Journal archive
ONE of the largest land holdings in metropolitan Sydney, the Bakehouse Quarter in North Strathfield, has been put on the market and it is expected to sell for in excess of $300 million.
JLL’s Australian head of retail investments Simon Rooney, Ben Hunter and Sam Brewer have been appointed to manage the sale on behalf of Kirela Pty Ltd.
The former Arnott’s biscuit factory was purchased by Seph Glew and Paul Tresidder in 1997. The pair formed the Kirela Unit Trust to hold and develop the property over a five-year period and 17 years later, the 60,000 sqm of vacant factory buildings have been transformed into a vibrant business and lifestyle precinct.
Rooney said the 6.39ha precinct is expected to achieve strong domestic, offshore, institutional and high net worth investor interest given the sites development potential.
“Market liquidity is arguably at an all-time high in this cycle, interest rates continue to sit at historic lows and we are experiencing unabated demand – all combining to produce sale activity at record pricing,” he added.
Located approximately 13kms west of the Sydney CBD, the town centre site currently occupies over 17,400 sqm of commercial, 18,700 sqm of retail and entertainment use space, with development approval approval for a further 4,900 sqm and has major future development potential (STCA and rezoning).
Tenants include Aldi Supermarket, Arnott’s, NRMA, Fitness First, Gloria Jeans, Subway and AMF Bowling along with 68 other retail and commercial tenants.
JLL’s director of international investments Ben Hunter said the market is experiencing unprecedented demand from offshore developers for large scale projects with strong underlying income with metropolitan Sydney locations being the primary focus.
“According to JLL Research, the number of daily passenger movements in and out of North Strathfield Station, currently at approximately 5,000, is set to rise – along with population growth forecast for the Local Government Area. The site is well-serviced by Sydney Buses, with stops located nearby on Underwood and Parramatta Roads, providing connectivity to Burwood, Concord, Parramatta, Hurstville, Rhodes and Ryde,” Hunter said.
JLL’s head of metro sales and investments Sam Brewer said the site offers cash flow together with scalable medium to long term development potential.
The expressions of interest closes on 13 November 2014.
Australian Property Journal
