This article is from the Australian Property Journal archive
AN underdeveloped industrial infill site spanning more than 109,000 sqm of land in Sydney’s Sutherland Shire has hit the market.
Located about 21 kilometres south of the CBD, the property at 260B Captain Cook Drive in Kurnell contains two warehouse buildings totalling 5,213 sqm and extensive hardstand areas, and is zoned E4 general industrial.
Some of the large surplus of undeveloped land is serviced and level while being leased to multiple tenants on short-term and monthly leases.
Colliers’ Matthew Meynell, Trent Gallagher and Edward McFarland, in conjunction with Andrew Hunter and Eugene Evgenikos of Stanton Hillier Parker, are marketing the property on behalf of Brett Lord and Richard Stone from RSM Australia Partners appointed as receivers and managers over the property.
“The site’s incredible versatility and scope for various development makes it ideal for short to mid-term development, while the offering will be particularly attractive to investors due to its current income generation and potential for significant increase in value,” the agents said.
“Its strategic location and development potential make it highly attractive to various buyer types, including developers, investors, and owner occupiers looking to capitalise on a nearly vacant block with holding income,” Gallagher said.
“Kurnell is a land-constrained market which provides a great alternate to south Sydney users who wish to migrate to the Sutherland Shire due to proximity and affordability.”
Kurnell has an industrial vacancy rate below 1%.
Evgenikos said, “Seldom in the market is a site offered with unrivalled scale and vast development upside, yet it is underpinned by stable holding income potential that can underwrite the purchase for investors and developers alike.”
Notable occupiers in the region include Dicker Data, National Storage and the Archie Rose Distillery, as well as Sydney’s desalination plant.
Expressions of interest close Thursday, 30th May.
A Cushman & Wakefield survey earlier this year showed that 86% of investors favour the Australian logistics and industrial market over other commercial property sectors, ahead of debt markets and alternative assets, with $45 billion of capital circling warehouses and sheds down under. One in two confirmed that the gap in purchaser and vendor pricing expectations prevented capital deployment in 2023, but now almost nine in ten plan to invest in Australian logistics and industrial assets in 2024.
The e-commerce boom that turbocharged demand for warehousing has powered the industrial and logistics investment universe to worth nearly $300 billion, on par with the office sector for the first time, and has it poised to become the largest traditional commercial real estate sector outright, according to CBRE.
