Sydney developer Toplace has sold a 7.6ha industrial site in Clyde (3km east of Parramatta) reaping a $75m profit.
The property at 15 Berry Street, Clyde comprises 29,600 sqm of warehouse and office space across two buildings together with a largely undeveloped site of 18,000sqm.
The site is located within the Camellia – Rosehill – Auburn Industrial precinct with direct frontage to Parramatta Rd and good access to the Western M4 Motorway and James Ruse Drive. The Clyde Railway station is also located within 5 minutes walk of the site.
Toplace acquired the assets off GPT for $65m in 2015, in what was thought of at the time to be a super profit for GPT who held the property on its books for just $41m with annual net income of $3.5m.
Toplace hoped to obtain approval to a Planning Proposal to rezone the land for the development of 2,200 residential units in 11 mixed use building of up to 35 storeys in height and submitted an application to Council in September 2016. Parramatta Council determined in November 2016 to not support the Planning Proposal due to the loss of employment lands and various conflicts with adjoining land uses and planning policies which made the site unsuitable for residential development.
The site remains zoned General Industrial however it does sit within the Parramatta Road Urban Transformation corridor and is likely at some future point to be considered for urban renewal, however the focus of the Granville renewal precinct is on sites further west of the Berry Street site.
The inability to secure the rezoning was a major set back for Toplace who paid a top price for the site, however the recent industrial boom has enabled the group to sell the site into a hot market and show a a $74m profit with the sale of the site to an undisclosed buyer at $140m.
The sale, which was settled on the 18th August 2021 represents $4,730/sqm of NLA or $1,829/sqm of site area and reflects a fully leased yield in the low 4%’s.
The sale compares to other deals in the market including Lendleases’ acquisition of SwissRE’s Eastern Creek warehouse facility which set a new benchmark with a 3.6% yield and a rate of $2,164/sqm of site area.
Further Information
The purchaser has appointed The Trust Company as its custodian / trustee.
PRCUTS Implementation Update 2021 (nsw.gov.au)
parramatta-road-implementation-plan-2016-2023.pdf (nsw.gov.au)
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