This article is from the Australian Property Journal archive
AS it sharpens its focus on in-demand data centres, industrial property juggernaut Goodman Group has offloaded three Sydney infill industrial properties to a partnership between Box Capital and Gaw Capital for $87 million.
The portfolio comprises assets in Wetherill Park, Lane Cove and Arndell Park, and spans a combined 36,838 sqm of land and 22,106 sqm of gross lettable area.
It features modern and highly functional warehouse accommodation with office spaces.A short weighted average lease expiry by income of 0.5 years offered immediate access for rental reversion upside.
“These assets’ unique specifications and value-add potential align with our commitment to build a best-in-class urban infill logistics portfolio,” said Joseph Chan, managing director, principal – investments at Gaw Capital.
“We look forward to further scaling the strategy in 2025.”
According to the selling agents it attracted multiple bids from a range of domestic and offshore institutional core-plus and value-add investors.
Colliers’ Trent Gallagher and Michael Crombie in conjunction with CBRE’s Shaun Timbrell and Jason Edge.
“All three assets had a short WALE (weighted average lease expiry) allowing for immediate rental reversion which is where the majority of domestic and offshore capital is looking to deploy,” Gallagher said.
“All three assets are great examples of what buyers are seeking, short term leases with the ability to capture market rents in the short term or repositioning potential to create value,” Timbrell said.
Vacancy rates in the Wetherill Park, Lane Cove and Arndell Park remain low, with significant rental growth forecast in both the west and north Sydney industrial markets as a result.
“The strong fundamentals of Sydney will continue to be further supported by; population growth, significant infrastructure projects and constrained supply of industrial space in infill markets,” principal of Box Capital, Matt Woodman said.
Industrial and logistics property landlords nationally can expect favourable conditions for rental growth in the coming years, as manufacturing, trade, demographic and consumption demands necessitate some 3.3 million per sqm on new space per annum between now and 2030 in a severely land-constrained market.
Year-to-date investment volumes are at $8.8 billion, up 36% on last year’s $6.5 billion, according to Savills.
Recent weeks have seen ASX-listed Growthpoint offload an industrial facility in Melbourne’s east for $22 million, at 13% above book value, Warburg Pincus-backed self-storage company StorHub pick up an inner Melbourne heritage warehouse site from Salta for $20.5 million, and on the other side of town, in Laverton, a private investor has secured two freestanding warehouse and office buildings for $20 million.
