This article is from the Australian Property Journal archive
DEVELOPERS have swooped on two western Sydney infill industrial sites with low coverage for a combined total of nearly $60 million.
Nearly 5.25 hectares of land in Glendenning was sold with vacant possession. The site is currently improved by a small office and laboratory building of about 2,000 sqm and parking.
CBRE’s Jason Edge and John Micallef negotiated the sale of the 201-203 Power St on behalf of Valspar (Australia) Corporation Pty Ltd.
“We received substantial interest from institutional and private developers during the process, which is reflective of the shortage of serviced industrial land available in western Sydney,” Micallef said.
“The size of the site and its core location in Sydney’s land constrained Glendenning industrial and logistics precinct were key drivers of buyer interest, with the property offering high exposure to the M7 Mwy and significant development potential.”
The property offers 185 metres of frontage to Power St and connections to surrounding major arterial road networks, including the M7, M4 and Great Western Hwy.
Meanwhile, Fletcher Building offloaded its manufacturing facility in Penrith for nearly $30 million to local developer Aon Ari Property, which will reposition the low-coverage site to accommodate small and medium sized manufacturers.
The New Zealand-listed building materials company had owned the 12.06 hectare property at 2115 Castlereagh Rd since 1959. It has 33,786 sqm of older style warehouses with the major occupier being Capral Aluminium, which bought Fletcher’s Australian Aluminium business 18 years ago.
In October, CSR furthered the selldown of its PGH Bricks manufacturing facility at Horsley Park, netting $84.3 million for an 8.6 hectare site amid growing demand for land near the future Western Sydney Airport. At about the same time, nearly four hectares close to the airport has been sold to owner occupiers in the food industry for $14.5 million.
Edge said the strong buyer interest in the Glendinning property highlighted the scarcity of industrial land in western Sydney, which had translated to low levels of new industrial and logistics development. Just 153,000 sqm of new industrial supply was added in the first quarter, 76% below the 647,000 sqm added in the same period of 2019.
“Industrial demand throughout Sydney remains very strong as companies continue to refine their supply chains,” Edge said.
“This has led to significant interest in available sites in core markets as developers look to unlock value in a tight market. In tandem, values have grown 4.5% year on year, with the majority of the growth occurring in western Sydney.”
