This article is from the Australian Property Journal archive
AROUND $90 million is expected for a significant Mascot site that marks the tightly held industrial hub’s biggest offering since Qantas sold off a large tract of land last year for $800 million.
The high-exposure site with dual street frontages to Ricketty Street and Ossary Street spans 10,100 sqm site has the potential to accommodate a gross lettable area of approximately 30,300 sqm. Among its current improvements is a complex of 11 office and warehouse units.
Savills has the listing and is billing 20-28 Ricketty Street as a major urban infill development opportunity.
“This truly is a once-in-a-lifetime opportunity to secure a substantial site in South Sydney, strategically positioned between the Sydney CBD, ports and airport, with easy connectivity to major motorways including the WestConnex M8 and upcoming M4-M5 Link Tunnel,” said Michael Fenton of Savills.
“This is a robust last-mile logistics location with an SA1 Rating of 93/100 for access to high income households within a 30-minute drive time,” said Fenton. This week, Perth’s GM Property chanced its arm at the demand in the market for convenient last-mile infill locations, putting two Melbourne sites to the market also with expectations of $90 million.
“The post-COVID-19 climate and surge in online retail transactions has seen unprecedented growth in logistics, with more than half of south Sydney’s current occupants in the sector,” Fenton said.
The Mascot site also offer flexible B7 zoning, with a 3:1 FSR and 44-metre height limit. In Australian Property Journal’s Talking Property podcast, MaxCap Group’s David Oudshoorn said that he doesn’t think it will be too long before more multi-level industrial developments are seen at inner-city last-mile logistics sites.
The only other significant sites with this zoning are owned by major institutional investors including Dexus and Goodman.
In October, 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 Sydney Kingsford Smith Airport Precinct. They will be redeveloped by the buyers into a $2 billion four-level ramp up, logistics, e-commerce and last-mile logistics hub.
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%.
Expressions of interest close 9th June.
