Tight yield highlights strong investor confidence in IOS and low site coverage sector
Colliers has successfully negotiated the off-market sale of 2A Mavis Street, Revesby for $50,000,000 to Realterm, achieving an exceptionally tight 2.78% net yield. The transaction showcases the continued strength of Sydney’s Inner South West industrial market and is the largest industrial sale in the region for 2025.
Colliers’ Trent Gallagher and Hamish Miles managed the deal following a direct approach from the buyer, an active IOS investor looking to expand its footprint across Sydney’s key infill industrial corridors. The sale reflects the growing demand for strategically located industrial assets with strong fundamentals and future growth prospects.
The property comprises a 7,618 sqm building on a 27,447 sqm site with 28% site coverage and is currently occupied by ASX-listed subsidiary Acrow Formwork and Scaffolding under a lease with a 4.3-year WALE. This robust lease profile reinforces the resilience of the South West industrial market and the sustained growth seen in recent years. The asset generates a net passing income of $1,390,275 per annum with substantial rental reversion anticipated upon lease expiry in 2030, presenting a compelling value-add opportunity for the purchaser.
“This landmark transaction underscores the continued strength and investor confidence in the Industrial Outdoor Storage (IOS) and low site coverage sector. This sale represents the largest industrial transaction in the region for 2025, highlighting the strategic importance of infill industrial markets,” said Trent Gallagher, National Director, Property Sales & Leasing | Industrial & Logistics.
“Our pace of deployment reflects both the depth of opportunities we are identifying and our conviction in Sydney’s south-west industrial corridor. The fundamentals across rental growth, tenant demand and scarcity of these low site cover sites continue to validate our strategy, and this asset align perfectly with our fund’s objectives,” added Charlotte Brabant, Realterm’s Head of Investments, Australia
Colliers’ Q3 2025 Industrial Snapshot indicates leasing volumes remained solid at approximately 800,000 sqm, reflecting stable underlying demand. Investor sentiment continues to strengthen, particularly in markets like Inner South West Sydney, driven by the scarcity of infill sites and the rising appeal of IOS assets. Yields are tightening and rental growth is accelerating as institutional capital seeks long-term growth and value-add opportunities.
“This asset adds a high-quality IOS site supported by compelling property fundamentals further strengthening our platform and deepening our exposure to assets that are operationally critical to transport and logistics users,” added Toni Ryan, Realterm’s Fund Manager, Australia.
“The South West industrial market remains robust throughout 2025, with every industrial asset selling at or above guide. Demand remains strong from owner-occupiers, institutional funds, and value-add investors, driven by the appeal of well-located assets with solid fundamentals and clear growth potential. We are pleased to assist the vendor with this significant transaction, and we congratulate Realterm on the acquisition of this substantial IOS asset for their recently established value-add fund” added Hamish Miles, Manager, Property Sales & Leasing | Industrial & Logistics.
Realterm acquired the asset within its newly established fund focused on Industrial Outdoor Storage (IOS) assets, reinforcing its strategy to target low site coverage properties with strong fundamentals and future growth potential. This acquisition follows another recent Colliers-facilitated IOS transaction at Unit 1A, 77 Governor Macquarie Drive, Chipping Norton.
Related Articles
