This article is from the Australian Property Journal archive
PRIVATE markets firm Partners Group and investment manager Realterm have acquired a north-western Sydney warehouse for $33 million, the global pair’s third acquisition for their Australian transport and logistics real estate joint venture.
The asset, 59 Glendenning Road in Glendenning was acquired with a nine-month lease back to S&L Steel. The pair is eyeing off more growth in the indoor outdoor storage (IOS) submarket of the industrial sector.
The property is composed of a 9,019 sqm freestanding facility across a 20,234 sqm site in an area with a vacancy level of 0.5% and offering proximity to the M7 Motorway.
“This well-located asset, in a key Sydney submarket, is particularly appealing due to its low site coverage providing high quality outdoor storage for potential occupiers,” Toni Ryan, fund manager Australia at Realterm.
“This acquisition aligns with our strategy to build a portfolio of IOS facilities catering for transport-advantaged occupiers.”
Colliers’ Gavin Bishop, Sean Thomson, Michael Crombie and Trent Gallagher were the agents.
The joint venture’s portfolio is now worth over $125 million following its maiden acquisition of 77 Governor Macquarie Drive in Chipping Norton, a 41,490 sqm industrial outdoor storage (IOS) secure storage facility, and of the 28,760 sqm IOS transport facility at 311 The Horsley Drive, Fairfield which was acquired for $28 million in the back half of 2024.
“Realterm’s Australian strategy is to acquire assets suitable for IOS offering significant opportunities for potential occupiers, while avoiding overdevelopment with warehousing,” said Charlotte Brabant, head of investments, Australia.
John Dixon, member of management, real estate Asia at Partners Group, said, “This addition to our portfolio reflects our focus on securing strategically located assets that offer significant potential for growth and optimisation.”
Joe Chien, managing director, real estate Asia at Partners Group, added, “The industrial outdoor storage sector presents a compelling opportunity as it addresses critical needs in urban logistics. We remain committed to identifying and expanding our footprint in this growing market segment across Australia.”
A recent Cushman & Wakefield shows that IOS rental growth has outstripped that of the broader logistics market. Since the beginning of 2019, IOS rents have more than doubled across the east coast, at 101.8%, and compares to 78.4% for the broader logistics sector over the same period.
Scarcity of land and continued demand from competing land uses for a higher and better use is expected to drive continued rental outperformance in 2025.
Ray White research showed industrial properties accounted for 39.6% of all commercial property transactions in 2024, making it the dominant sector for deals by volume across Australia.
