A 10 hectare industrial development site in South West Sydney has sold to a private developer for $16.3 million.
The highly competitive on-market expressions of interest campaign saw 11 round one bids which led to a tender process for round two, where multiple signed contracts were received.
The property at 21 Marigold Street in Revesby was sold by Trent Gallagher and Angus Urquhart of Colliers on behalf of LBP Developments Pty Ltd.
“The deal resets land values within the region and shows multi-level warehousing in the south west is on the horizon,” Trent Gallagher says. “This was a fantastic opportunity to secure one of the last remaining scalable industrial development sites within Revesby where land supply is greatly diminishing, providing strong prospects for capital and rental growth.”
The current lease expires April next year, with the new price equating to 1555 per sqm of land with a passing yield of 2.45 per cent. Angus Urquhart the current rent was of less concern because the site was purchased for development purposes.
“The land rate achieved surpasses all expectations in the inner south west market and truly reflects how difficult it is to find prime industrial sites in the wider Sydney region,” he says.
The record-breaking $802 million sale of a 13.8-hectare Mascot site negotiated through Colliers is expected to be the catalyst for a price boom in surrounding regions, spurred on largely by increased demand for multi-level warehousing and logistic facilities on the back of the shift to online shopping experienced throughout the pandemic.
In the 12 months to September 2021, the land values from 1 to 5 hectares in South West Sydney have risen 24.1 per cent, according to Director of Industrial Research for Colliers Luke Crawford. This was the highest annual growth rate since March 2019 and well above the 10-year average growth rate of 13.7 per cent every year.
For more information on Colliers, click here.