- The industrial property has tarmac access to Nowra Airport.
- HMAS Albatross is the air station for the Royal Australian Navy's Fleet Air Arm.
- Is expected to fetch between $13M - $15M.
A unique industrial property has come to market on the New South Wales South Coast.
Located at 9-11 Wugan Street, Yerriyong, the Air Affairs leased industrial property is being sold by Australian investment manager Sumner Capital via a private treaty campaign run by Knight Frank.
Air Affairs is a fully owned subsidiary of QinetiQ.
The property is unique because, not only does it have tarmac access to HMAS Albatross and Nowra Airport, Knight Frank’s Angus Klem said it was a freehold offering.
“Normally, these properties are leasehold, so the fact that this is freehold will be an attractive proposition to investors,” he said.
“The tenant is also very secure, with a market capitalisation of several billion dollars and a lease in place until 2029 with annual rent reviews of CPI plus one per cent, providing solid cash flow for a purchaser.
“The location is ideal for this tenant, with the property providing direct access to the airstrip,” added Klem.
The 2.2 hectare site comprises a 3,995 square metre (sqm) office and warehouse building across two buildings, and 76 car bays.
The property generates a net income of $947,000 and has a WALE of 6.5 years (as at December 23).
Knight Frank’s Ben Mostyn said the location of the property was backed by significant public and private infrastructure investment which has resulted in a vibrant high tech industrial and commercial precinct.
“The asset stands within a strategic innovation hub within close proximity to one of the world’s most desirable cities – Sydney.”
“The astute investor will be offered significant holding in an area that is already deeply intertwined in an extraordinarily strategic location.
Mostyn added that over $15 billion is expected to be injected into the Shoalhaven region over the next 20 years, with the population to also expand by 140,000 people.
“There is also rapidly growing government funding in the defence sector, exceeding $50 billion for the first time over 2023 to 2024.”
Infrastructure projects in Shoalhaven include the $1 billion-plus Nowra Bypass, which is in the planning stages, as well as the recently completed $630 million Albion Park Bypass.
The $450 million Berry to Bomaderry upgrade and the $310 million Nowra Bridge project are currently under construction.
The private treaty campaign for the Yerriyong property will close at 4pm (AEST) on 24 August, with the price expectations between $13 million and $15 million.
