A versatile corner industrial estate in the heart of a popular land constrained market has come up for sale.
The 12,000sqm property at 1 Amour Street in Milperra is currently leased to BR International Logistics until February 2023. The property consists of two standalone buildings totalling 6,483sqm of gross lettable area, making it suitable to a range of occupiers.
With a net market rental of 1.296 million, the opportunity exists for an occupier or value-add investor to position themselves within one of Sydney’s strongest infill industrial markets.
The Colliers team of Trent Gallagher, Gavin Bishop and Sean Thomson have the exclusive listing, with price expectations of $25 million.
“With a limited supply of quality industrial opportunities available to acquire or lease within Sydney, and significant pent-up demand for assets of this price point and size, the offering ticks all the boxes to cater for a large cross-section of potential purchasers and occupiers,” Mr Gallagher said.
“The land constrained nature of the precinct supports strong future rental and capital growth prospects and is further set to benefit from the rapid growth of e-commerce,” Mr Bishop added.
Following the large jump in rents so far in 2022, growth remained elevated in Q3 2022. Prime rents grew a further 7.8 per cent quarter on quarter, taking the annual growth rate to 20.5 per cent. Growth in the secondary market was also strong, with rents increasing 6.9 per cent quarter on quarter and 20.1 per cent over the past year.
“Despite a modest softening in yields as a result of higher funding costs, capital values have been more than preserved by rising rents. In the 12 months to Q3 2022, prime capital values increased on average by 17.6 per cent across the Sydney market,” Mr Thomson said.
1 Amour Street in Milperra is being offered for sale or lease via private treaty.
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