Colliers Industrial Capital Markets has sold a future last mile logistics estate at Milperra for $34.2m.
The property, at 373 Horsley Road, Milperra, is a large 3.1ha site with excellent access to major road infrastructure servicing Sydney, making it ideal for redevelopment as a last mile logistics estate.
The existing 9,304sqm warehouse is leased to ASX listed company UGL Limited for a further 1-2 years, providing short term income of $884,903 per annum and a passing yield to the purchaser of 2.6%.
The Milperra industrial precinct is a land constrained market with strong tenant demand supporting strong rental / capital growth prospects in the future.
The property was acquired by a private investor, Pittwater Industrial who plan to construct a State of the Art Logistics Estate to cater for the strong demand in the market.
The site is zoned General Industrial with a 1:1 FSR and a minimum lot size of 1500sqm providing significant opportunities for development.
Colliers Gavin Bishop and Sean Thomson conducted the sale campaign on behalf of the vendor.
Gavin Bishop said “With the onset of the COVID-19 pandemic, we have seen investors shift their focus to acquiring well located infill industrial sites of scale that benefit from proximity to major motorways and offer access to large residential catchments, due the exponential growth in e-commerce and the predicted strong rental growth forecasts. With this rise in investor demand, we have seen an expedited increase in industrial land values, with values rising almost 55% over the past 12 months.
The property was last sold in 2015 by GDI Property Group to GSAN Pty Ltd for $10.625m.
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