This article is from the Australian Property Journal archive
DEVELOPER Jean Nassif has put a prized 1.64-hectare industrial and development site in the tightly-held area around Sydney Airport to the market, with expectations exceeding $100 million.
Overlooking Mascot Oval and 400 metres from the Airport, 146 and 154 O’Riordan Street could be held as an industrial investment or developed into multi-level industrial or commercial premises, or the buyer could utilise an approved DA for a hotel and serviced apartments.
The site has clear uninterrupted site lines and 150 metres’ frontage to O’Riordan Street, and is offered with a gazetted height increase across part of the site up to 44 metres and potential gross floor area of 49,212 sqm.
There is also the option to take advantage of ongoing industrial rental growth and increase rents drastically, with all leases due to expire during 2023. Current leases to tenants including Daiwa Food Corporation and Schindler Lifts return $4.5 million per year.
Colliers agents Michael Crombie and Trent Gallagher are managing the expressions of interest campaign that closes Wednesday, 12th April, on behalf of Nassif’s company JKN Park.
“It’s unusual to see a site of this scale for sale in such a desired location. The immediate proximity to Sydney Airport, Port Botany, Mascot Railway and the motorways will be integral to the end development of this site,” Crombie said.
“The vendor has heavily de-risked this asset, with a DA as well as an amendment to the height enhancing the development opportunity.”
Gallagher said the O’Riordan Street asset will be hotly contested as it will suit a huge buyer pool including industrial investors seeking to reposition, industrial developers for multi-level logistics, office, hotel, data centres and serviced apartments.
Demand for property in Mascot has skyrocketed due to its location close to Sydney Airport.
Around 18 months ago, Qantas netted $802 million from the sale of nearly 13.8 hectares of land near its Sydney headquarters to a consortium led by logistics property player LOGOS and Australian Super. In a long-term sale and leaseback deal, Qantas sold a 21,795 sqm distribution centre, and a further three development sites totalling 98,645 sqm immediately adjacent to the Airport precinct. They will be redeveloped by the buyers into a $2 billion four-level ramp-up, e-commerce and last-mile logistics hub.
Goodman Group and Charter Hall also have multi-storey industrial projects in the area.
In December, Canal Aviv Trust submitted plans for a dual-tower, 12-storey office building on the 8,947 sqm site at the corner of Ricketty and Venice Streets.
Ten months ago, a warehouse and office complex site with frontages to Ricketty Street and Ossary Street and spanning 10,100 sqm was lobbed to the market with hopes of $90 million.
Nassif sold a Parramatta site in late 2021 for about $70 million to a build-to-rent platform run by Tim Gurner and Qualitas, just a few months after he turned a $75 million profit on a 7.65-hectare western Sydney industrial site he owned for just six years and sold to Goodman for $140 million.
