This article is from the Australian Property Journal archive
MORE infill industrial landholdings Sydney’s south have come to the market, including a 1.6-hectare site in Matraville that is carrying hopes of more than $40 million.
Strategically located near Port Botany and Foreshore Road, the 16,326 sqm property at 60-66 Perry Street and 1 Kelly Street is currently occupied by highly functional building improvements of 9,838 sqm, billed as a highly attractive prospect for investors, industrial and strata developers, and self-storage operators.
The Colliers team of Trent Gallagher, Michael Crombie, Sean Thomson and Gavin Bishop have the listing in conjunction with Michael Laing of The Agency on behalf of Orcades Investments Pty Limited.
“This flagship site is such a rare offering of scale within the south Sydney industrial precinct which is the most tightly held market in the country, and it offers so much upside through rental reversion and redevelopment,” Gallagher said.
Crombie said the market “loves these red brick character buildings and the opportunity to provide an improved investment and/or treat the opportunity as a blank canvas to start again”.
The E4 general industrial zoning offers multiple potential development outcomes, allowing for a potential gross floor area of 16,326sqm. The property has significant rental reversion upside as well as a staggered weighted average lease expiry (WALE) of 3.26 years by income.
Industrial rental growth forecasts within south Sydney are at around 11.5%, according to Colliers, even as rental growth in the broader market slows down.
Expressions of interest close 12th June.
Meanwhile, more than $16 million is expected for a Mascot industrial site occupied by global air services company Dnata, offered with a short-term lease and development potential for up to 44 metres.
Colliers’ Crombie and Gallagher have the listing.
Located at 176-180 O’Riordan Street, the property has a floor-space ratio (FSR) of 3:1, and Gallagher said “which you can generally push for higher…along with a height limit of 44 metres allowing for a total gross floor area of 6,655 sqm”.
“The site also has substantial existing rental holding income that a purchaser can benefit from whilst planning a future development across the site,” Gallagher said.
Dnata provides ground handling, cargo, travel and flight catering services worldwide, and services over 9.9 million passengers across 107,000 flights annually in Australia. Its tenancy has a WALE by income of 1.25 years, with an assessed net market income potential of $644,570 per annum, indicating significant rental uplift from current levels.
Just a few doors down at 247 King Street, logistics specialist developer Pittwater Industrial is looking for a buyer for its 1.37-hectare landholding, putting it to the market less than 18 months after acquiring the logistics estate. Pittwater Industrial acquired the site in November of 2022 for $66.75 million from billionaire Bob Ell’s Leda Holdings, which in turn had bought the site for $48 million just three years earlier. Colliers is also handling the sale.
The site has 10,546 sqm of warehouses with a short WALE by income of 0.26 years, offering immediate access to rental reversion upside or value-add initiatives. It also has a FSR of 3:1, and 22-metre height limit allowing for 41,052 sqm of gross floor area.
Late last year, Dick Smith Investments offloaded a two-storey Mascot commercial building on a 4,048sqm site at 52-60 Kent Road in Mascot for $15.5 million to a private investor.
The prime industrial and last-mile logistics location in and around Sydney Airport has attracted a suite of heavy hitters. Just a suburb or two away, industrial giant Goodman Group completed one of the country’s first multi-storey warehouses, which has 16,000 sqm across two levels, and has more in its development pipeline. Property funds manager Charter Hall is building another two-storey warehouse nearby. LaSalle Investment Management has also joined the fray.
