This article is from the Australian Property Journal archive
CLOTHING business Ramo has snapped up a large scale Milperra warehouse for $27 million as industrial transactions in the south-west Sydney pocket tick over $600 million in just a few months.
Split across two buildings and on 11,200 sqm of land, the property at 36-48 Ashford Avenue is currently occupied by tenants 32 Hundred Lighting, Idiom Furniture and G4M Meticulous with a 1.46 year weighted average lease expiry.
The sale price represented a yield of 3.47%, with Ramo set to move in.
“After a competitive EOI process with nine first-round offers, totalling circa $240 million worth of capital, the asset was ultimately sold to a South Sydney occupier looking to relocate their business to a bigger, more affordable facility,” said Colliers’ Hamish Miles, who sold the property with colleague Trent Gallagher and LJ Hooker Commercial’s Jon Orsborn.
The property has IN1 general industrial zoning and offers warehouse clearance of up to 10.8 metres, modern office accommodation and ample on-site car parks.
Gallagher said the deal continues to demonstrate the strength of the inner south west industrial market and the ongoing trend of south Sydney occupiers migrating down the M5 Motorway.
“The buyers jumped on the property as they saw merit in Milperra as a growth suburb on the back of the developments in the immediate area by PWD, ESR and other large corporates,” Orsborn said.
Since December, the inner south west industrial market, made up of the suburbs being Padstow, Milperra and Revesby, has seen multiple off-market transactions to institutional capital totalling in excess of $600 million worth of property.
The Sydney industrial market was the busiest nationally in the March quarter, seeing $1.53 billion worth of deals, and the demand has pushed down yields by 127 basis points since the end of 2019 to 3.95%.
