This article is from the Australian Property Journal archive
LOGISTICS specialist developer Pittwater Industrial has put up for sale a 1.37-hectare landholding on the doorstep of Sydney Airport, in one of the country’s most tightly-held institutional-grade markets, less than 18 months after acquiring the logistics estate.
The 247 King Street site in Mascot spans 13,684 sqm and has 10,546 sqm of warehouses with a short weighted average lease expiry by income of 0.26 years, offering immediate access to rental reversion upside or value-add initiatives.
Its E3 productivity support zoning provides a broad range of development outcomes, and a 3:1 floor-space ratio and 22 metre height limit allows for a significant 41,052 sqm of gross floor area.
Pittwater Industrial acquired the site in November of 2022 for $66.75 million from billionaire Bob Ell’s Leda Holdings, which in turn had bought the site for $48 million just three years earlier, in the wake of the collapse of ready-to-eat meal producer Jewel Fine Foods, owned by the Matta family.
The Colliers team of Gavin Bishop, Sean Thomson, Michael Crombie and Trent Gallagher has the listing of 247 King Street on behalf of Pittwater Industrial. Expressions close April 19th.
Crombie said the property is set to provide a diverse appeal to a large cross-section of purchasers including developers in the industrial, strata, office, data centre, hotel and self-storage space, given the flexibility of the zoning.
“We expect the property’s proximity to critical infrastructure, transport links and consumers will continue to fuel rental growth, given the historically low vacancy levels nationally and the rapid growth of e-commerce,” Gallagher said.
The property’s ideal last-mile logistics location could lend itself to multi-storey warehousing. At the end of last year, just a suburb or two away, industrial giant Goodman Group completed one of the country’s first multi-storey warehouses, which has 16,000 sqm across two levels, and has more in its development pipeline. Property funds manager Charter Hall is building another two-storey warehouse nearby. LaSalle Investment Management has also joined the fray.
Industrial rental growth forecasts within the South Sydney are at around 11.5%, according to Colliers, even as rental growth in the broader market slows down.
“This world-class opportunity to secure a strategic South Sydney landholding with unrivalled flexibility to activate as a core-plus investment or to redevelop is expected to attract substantial interest given the scarcity and area in a key growth region,” Bishop said.
The property provides easy access to Sydney Airport, Port Botany and key arterial roads and motorways including O’Riordan Street, Qantas Drive, the M5 and M8 Motorway.
Developer Jean Nassif – who is currently on the run from authorities and believed to be overseas – put a prized 1.64-hectare industrial and development site in the tightly-held area around Sydney Airport to the market a year ago, with expectations exceeding $100 million.
