This article is from the Australian Property Journal archive
A SMITHFIELD industrial estate spread across two properties is up for sale with price expectations of $60 million, as strong demand continues to outstrip supply across Sydney.
Located at 338-350 Woodpark Road and 1 Dupas Street, Smithfield Central Industrial Estate comprises a combined site area of 33,988sqm and 17,546sqm of total GLA across eight buildings, in one of Sydney’s strongest and tightly held markets.
Trent Gallagher, Gavin Bishop, Sean Thomson and Peter Dale from Colliers have been exclusively appointed to manage the sale of the property via an expressions of interest campaign.
“Given the central location of the property and the precinct, we expect to see strong demand from occupiers seeking ‘last-mile logistics’ space,” said Gallagher.
A recent report from Colliers found that Western Sydney has just 2.7 years’ worth of developable industrial land supply remaining, while demand for the market from occupiers is still coming in at record levels and pushing up rents.
The two adjoining sites in such a constrained market, is also supported by strong investment fundamentals and with several enrichment opportunities.
“The ability to add immediate value through redevelopment of the sites is a major drawcard, with high order redevelopment prospects including the possibility of a multi-storey logistics facility,” said Bishop.
The property has a WALE of 1.7 years and a net passing income of around $2.137 million, which is well below current market levels. While the short WALE leaves the potential to add value through rental reversion or redevelopment.
Vacancy rates are historically low in Sydney’s Central West for buildings over 5,000sqm, currently sitting at 0.2% with Smithfield at 0%.
“With new benchmarks achieved within the direct market and the ability to acquire and further amalgamate adjoining sites, the potential could potentially allow for the creation of a masterplan estate,” said Thompson.
The sites currently tenants include SC Logistics, Australian Select Timbers, AAF International and Jalco.
The expressions of interest campaign for Smithfield Central Industrial Estate, at 338-350 Woodpark Road and 1 Dupas Street, is set to close on 17 May 2023.
