- Over 90 enquires were received for the site at 57-74 Dunheved Circuit
- The property was sold at a yield of 3.79%
- Demand remains high across the Sydney industrial submarkets
The Western Sydney industrial market is once again having a strong year, with a 28,090 sqm site in St Marys selling for $24.5 million.
During the sales campaign for 57-74 Dunheved Circuit, over 90 enquires were received resulting in 30 inspections and 11 offers to purchase.
The industrial facility is freestanding and has both production and warehouse storage space and presentable office accommodation. Presently, the building is leased on a five-plus-five-year term to Nepean Rubber Mouldings Pty Ltd.
The site is zoned IN1 Industrial and has a building area of 11,613 sqm and has additional undeveloped land.
Colliers’ Carl Pearce and Matthew Flynn sold the property at an initial yield of 3.79%.
“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,” said Mr Pearce.
“The property was purchased by a private investor with the view of holding on to the property for future growth and potential redevelopment.”
Carl Pearce, Colliers
“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,” added Mr Flynn.
“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.”
Despite a slowdown in the Sydney residential market, a large flurry of activity in the industrial market continues with the Colliers Sydney West team transacting over $85 million of such assets during the first quarter of 2022.
Demand was broadly spread across the Western Sydney submarkets during the first quarter, with the Outer West and South West the most active.
The lack of leasing options has also continued to push rents higher in the area.
“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 noted