This article is from the Australian Property Journal archive
AN industrial site in Wetherill Park has sold for $25 million as 2-hectare land value rates experience a significant surge in Sydney’s metro west region.
Located at 23 Davis Road, around 34km west of the CBD, the landholding spans 2.028-hectares with low site coverage of 10%, with 2,015sqm floor area.
The property is underpinned by a recent lease to InfraBuild Australia, the country’s largest processor and distributor of steel long products.
The lease to InfraBuild is on a 5 year term with an optional break clause after 18 months and returns a net income of $1,014,000 per annum with strong reviews to the greater of CPI or 3.5%.
Elijah Shakir and Jason Edge from CBRE, alongside Barton Cottle and Brendan Ham from Bishop, managed the sale via an expressions of interest campaign on behalf of private vendors.
“The vendor acquired the site for just over $7 million in July 2014, with the sale price reflecting a 257% increase in value in under 10 years,” said Shakir.
The value of 2-hectare metro west region land parcels has increased from $350/sqm to $1,250/sqm over the past nine years.
Back in March, a tenanted industrial facility at 8 Kellaway Place in Wetherill Park sold to an owner occupier for more than $16 million.
“Sydney continues to be a major focus for industrial buyers, particularly for land-rich assets,” added Shakir.
“The campaign attracted interest from both owner-occupiers and investors due to existing site approvals as well as the new lease which provided flexibility to both purchaser groups.”
