Kador Group have reported to have sold their 8.27ha industrial facility to Charter Hall Group for $115m.
The property at 40-66 Lockwood Road comprises a two-storey office area as well as a warehouse distribution centre, external car parking and hard standing areas. The property is leased to Winc, and used as its national distribution centre. Winc, which stands for Work Incorporated, is a Platinum Equity company, supplying office essentials, furniture, safety equipment and IT solutions, focused on enabling businesses through the delivery of everything a workplace needs to work.
The Kador family purchased the then Corporate Express facility in 2009 from Australand Property Group for $43.8 million, reflecting a yield of about 8.7 per cent. The Charter Hall purchase price is expected to represent a yield of circa 5%.
Erskine Park has become a thriving industrial hotspot in outer western Sydney in the last decade given its proximity to two main thoroughfares – the M4 and M7 motorways.
The Erskine Park precinct is expanding west to join with the Mamre Rd area which forms the next part of the Western Sydney Employment Area (WSEA). The WESA contains around 600 hectares of existing readily developable land however this is expected to be exhausted within 4 to 5 years. The proposed rezoning and expansion of the precinct should help alleviate this shortcoming and provide approximately 780 hectares of new industrial land for Western Sydney. The draft rezoning package for Mamre Road Precinct was on exhibition between 20 November and 18 December 2019 and expected to gazetted by 2021. The Mamre Road Precinct has also been identified as a potential site for an Inter modal Terminal and a preferred site within the precinct has been identified and serviced by the proposed Western Sydney Freight Line.
The Charter Hall is within close proximity to the proposed Western Sydney Freight Line and Intermodal Terminal which will continue to drive tenant demand into the area. Charter Hall have two smaller industrial assets in Tyrone Place Erskine Park. GPT's also own a 24 ha industrial estate in Templar Rd which includes a 9.2ha site they acquired off Fitzpatrick Investments in May 2019 for $107m.
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