The Western Sydney industrial market has had a strong start to 2022, highlighted by the recent sale of a 28,090sqm site in St Marys for $24.5 million.
Over 90 enquiries were received during the campaign for 54-74 Dunheved Circuit, generating 30 inspections and 11 offers to purchase.
The freestanding industrial facility consists of both production space, warehouse storage space and presentable office accommodation. The building is leased on a five-plus-five-year term to Nepean Rubber Mouldings Pty Limited.
Zoned IN1 Industrial, the property has a building area of 11,613sqm and has additional undeveloped land, providing an opportunity to construct further buildings on site or to redevelop entirely in time.
Carl Pearce and Matthew Flynn of Colliers sold the property, at an initial yield of 3.79 per cent.
“The property was extremely well received during the sale campaign, attracting significant interest given the long-term leaseback to a well-established business, in a well-connected in-fill industrial precinct. The property was purchased by a private investor with the view of holding on to the property for future growth and potential redevelopment,” Mr Pearce said.
“This sale has set a new benchmark for buildings of this size and nature in St Marys and demonstrates the continued strength of the broader Western Sydney investment market in the sub-$50 million price bracket. With supply of properties to buy at record lows and huge demand from investors, owner occupiers and developers, there has never been a better time to take advantage of current market conditions,” Mr Flynn added.
The sale is part of a larger flurry of activity within the region, with Colliers Sydney West team transacting on more than $85 million worth of industrial assets through the first quarter of 2022.
“As a result of running multiple competitive sale campaigns during Q1 2022, we have generated a list of some 600+ active buyers, all of whom are keen to learn of new opportunities to buy,” Mr Pearce concluded.
Demand over the first quarter was broadly spread across the Western Sydney submarkets, albeit with the Outer West and South West being the most active, Colliers research shows. The lack of leasing options also continues to push rents higher, with prime rents in Western Sydney growing by an unprecedented rate through the quarter.