This article is from the Australian Property Journal archive
PRIVATE property development and investment company Leda Holdings has offloaded its 4.58-hectare industrial estate in Mount Druitt for $50 million to Gibb Group.
91 Kurrajong Avenue comprises 24,876sqm of total building and warehousing area, with extensive office accommodation ad full staff amenities.
Elijah Shakir and Jason Edge from CBRE managed the sale of the property Gibb Group, a national vertically integrated industrial real estate platform, who plan to reposition the asset via major refurbishments and re-setting existing rents.
“The off-market acquisition of 91 Kurrajong Avenue is a great example of our targeted strategic origination approach,” said Matthew Gibb, CEO at Gibb Group.
“Whilst the acquisition price reflects underlying land value, we see significant opportunity to create value through leveraging our active and nimble management approach to refurbish and reposition the existing functional improvements and the potential for further development over the longer term. We will look to build on this acquisition, by actively growing our exposure to similar well-located industrial and logistics assets in key metropolitan markets.”
Mount Druitt is located 43 kilometres west of the Sydney CBD, in the City of Blacktown and is part of the Greater Western Sydney region, with the estate boasting access to main M4 and M7 and rail link and close proximity to Westfield Shopping Centre and Mount Druitt Station
“The Mount Druitt acquisition for Gibb Group represents a purchase below replacement cost, with passing income,” said Shakir.
“The location is also due to benefit from significant infrastructure upgrades. This sale highlights the ongoing focus that buyers have for Sydney logistics with the majority of capital remaining focused on core plus or value add opportunities.”
At the time of settlement, the property was leased to Combined Warehousing Solutions, Earthworx, Paramedical and Sunnyfield, with a passing net income of $2.5 million per annum.
“Leda’s divestment of the asset completes their value-add strategy of the fringe western Sydney site which has undergone significant refurbishment, redevelopment and repositioning since its original acquisition,” added Shakir.
In Sydney’s industrial market, this week saw Fife Capital snapped up a core-plus industrial investment with major development potential in the tightly-held Matraville. While ISPT’s speculative industrial developments in Western Sydney attracted major leases with Coles and Australia Post.