This article is from the Australian Property Journal archive
FIFE Capital has snapped up a core-plus industrial investment with major development potential in Sydney’s tightly-held Matraville, which had been put up for sale earlier this year with expectations of more than $40 million.
The acquisition follows Fife Capital attracting a $200 million investment from US bank Goldman Sachs into a portfolio of seven last-mile logistics properties it had assembled across Melbourne, Brisbane, Perth and Adelaide.
The 60-66 Perry Street & 1 Kelly Street site in Matraville is strategically located near Port Botany and Foreshore Road in Sydney’s south-eastern suburbs, spanning 16,326 sqm and is well-connected to Port Botany, Sydney Airport, and key arterial motorways including the M5 and M8 Motorways, and Sydney Gateway.
This landholding boasts a 52-metre frontage to Perry Street and a 146-metre frontage to Kelly Street, presenting the opportunity for multiple re-development and value-add initiatives with short-term holding income across four separate titles.
Colliers’ Trent Gallagher, Michael Crombie, Gavin Bishop and Sean Thomson and The Agency’s Michael Laing sold the property, and said interest came from domestic and offshore institutional groups.
The agents wouldn’t disclose the sale price. Industry sources told Australian Property Journal the property sold close to the asking figure.
“It is exciting to find such creative older style buildings knowing that developers have the ability to bring a new lease of life for this precinct which is likely to have a flow-on effect to the greater Matraville/Port Botany area,” Crombie said.
Existing improvements include medium clearance, clear-span warehousing across seven units, with hardstand space and on-site car parking, and a two-level office component.
1 Kelly Street sits on its own title directly across Kelly Street and is currently used for overflow car and truck storage. 60-66 Perry Street provides a net passing income of $1,149,081 (or $117 per sqm) per annum and an assessed net market income of $2,618,055 (of $266 per sqm) per annum.
The property also offers rental reversion potential and multiple value-add redevelopment options with a staggered weighted average lease expiry (WALE) by income of 3.0 years.
Gallagher said the offering presented an “extremely rare opportunity to acquire a flagship site, strategically positioned within the most tightly held industrial market in Sydney”.
Matraville has in recent weeks seen’s one of Australia’s first-completed multi-level industrial warehouses put up for lease, just a few weeks after being acquired by Cabot Properties for $137.6 million.
The newly-completed 19,819 sqm 42-52 Raymond Avenue building is a two-storey, ramp-up facility consisting of four units ranging in from 4,640 to 5,109 sqm. One is currently leased to an established local roofing material supplier.
There is up to 15,178 sqm of available gross lettable area. Named Portal, the development was delivered by LaSalle Investment Management, together with Hale Capital as development partner and Vaughan Constructions as the appointed builder.
Thomson said low vacancy rates in land-constrained and infill markets like Matraville, coupled with its proximity to critical infrastructure such as Port Botany and Sydney Airport, have driven resilient rental growth.
Close to the Airport, Time and Place is expecting more than $30 million for an acre of industrial land in sought-after Mascot, which could ultimately make way for an office building.
