Substantial South Sydney landholding provides world-class industrial opportunity

A generational landholding on the doorstep of Sydney Kingsford Smith Airport in one of the most tightly held institutional-grade markets in Australia has come to market.

An incredibly low supply of land in the South Sydney industrial market is set to spur demand for the 13,684sqm site at 247 King Street, Mascot, boasting expansive 98 ­­metre frontage and presenting major core plus and value-add redevelopment opportunities.

The Colliers team of Gavin Bishop, Sean Thomson, Michael Crombie and Trent Gallagher have the exclusive listing on behalf of Pittwater Industrial.

“This world class opportunity to secure a strategic South Sydney landholding with unrivalled flexibility to activate as a core-plus investment or to redevelop is expected to attract substantial interest given the scarcity and area in a key growth region,” Mr. Bishop said.

“The high-quality asset of 10,536sqm holds a strategic WALE (by income) of 0.26 years which benefits from short-term and holdover leases, offering immediate access to rental reversion upside and the ability to implement value-add initiatives.” Mr. Thomson said.

The flexible E3 Productivity Support zoning provides a plethora of potential outcomes, while the 3:1 FSR and 22 metre height limit allows for a significant 41,052 sqm of GFA (STCA).

“The property is set to provide a diverse appeal to a large cross-section of purchasers including developers in the industrial, strata, office, data centre, hotel and self-storage space, given the incredible flexibility of the zoning,” Mr. Crombie said.

“We expect the property’s proximity to critical infrastructure, transport links and consumers will continue to fuel rental growth, given the historically low vacancy levels nationally and the rapid growth of e-commerce,” Mr. Gallagher said.

Over 2024, Industrial rental growth forecasts within the South Sydney is expected to be recorded at approximately 11.5 per cent, which will continue to support sound investment fundamentals and strong underwriting prospects.

The property provides unparalleled access to Sydney Airport, Port Botany and key arterial roads and motorways including O’Riordan Street, Qantas Drive, the M5 and M8 Motorway.

247 King Street, Mascot is for sale via an International Expressions of Interest campaign closing on Friday, 19th of April.