This article is from the Australian Property Journal archive
AN expansive industrial warehouse in Smithfield has sold to a local owner-occupier for $27 million, in one of Sydney’s most sought after institutional grade investment markets.
The 7,101sqm building occupies an 18,900sqm site at 63 Britton Street, reflecting a low site coverage of just 38%, and was sold with a WALE of 0.5 years on an initial passing yield of 3.29%.
The property is leased to national logistics covenant Computertrans Group Pty Ltd, generating a secure Net Passing Income of $890,024 per annum, reflecting a rate rental rate of $125/sqm.
“Smithfield is one of Sydney’s strongest and most highly sought-after institutional-grade investment markets. The land value of this site is estimated at almost 100% of the overall value,” said Elijah Shakir, head of western industrial at CBRE.
“The property was sold with the ability to obtain vacant possession in February 2024, so the on-market sales campaign attracted investors and owner-occupiers who were eager to re-let or occupy the premises. Our buyer is doing just that and relocating from Marrickville.”
Shakir, Jason Edge and Chris O’Brien from CBRE, alongside Gavin Bishop and Sean Thomson from Colliers, negotiated the deal on behalf of Barings, with the purchaser a local owner owner-occupier migrating their operation.
“The Western Sydney industrial market continues to be incredibly undersupplied as it is one of the most tightly held and established industrial precincts,” added Bishop.
“These factors combined with a quality asset saw strong interest and as a result, a fantastic sale price.”
Irongate recently made a move on Smithfield, launching an unlisted industrial property fund with the $57.25 million acquisition of a warehouse in the suburb.
Between now and 2027 Sydney is forecast to see 850,000sqm in multi-storey warehouses in development, with multi-storey warehouses expected to account for approximately 15% of Sydney’s new industrial stock.
