A combined 5.5 hectares in Sydney’s south west last mile logistics corridor has been acquired for $128 million.
Stockland says the land in the industrial precinct of Padstow allows access to almost three million people within a 30 minute drive, with proximity to Sydney Airport and major road networks connecting to all of metropolitan Sydney.
The acquisition adds to the company’s $3 billion plus Logistics pipeline.
Louise Mason, Stockland Commercial Property CEO says the deal aligns with developer’s strategy to increase its exposure to premium logistics sites along the eastern seaboard.
“Demand for logistics leasing, particularly from e-commerce businesses, continues to be strong,” she says.
“These acquisitions further increase our weighting in one of the most land constrained and attractive logistics markets in Sydney’s south west with immediate rental income and redevelopment potential.”
Trent Gallagher and Hamish Miles of Colliers transacted the sale, with both sites fully leased with a WALE (weighted average lease expiry) of 2.2 years.
“This is a landmark deal for the region especially after the record-breaking Qantas sale in nearby Mascot. With that site being earmarked for future multi-level logistics facilities, other sites like this one in Padstow with similar development potential are in high demand,” Trent says.
“The site is fully leased providing a net yield of 4.28 per cent yet has huge future scope for redevelopment as the existing leases expire soon. It is also situated close to major transport links like the WestConnex, M8 Motorway and M5 Motorway.”
Tony D’Addona, Stockland Executive General Manager of Workplace & Logistics, says Stockland has completed or commenced more than $2001 million of new developments in the logistics markets.
“With a shortage of premium warehouse and distribution sites available in Sydney adjacent to key transport corridors, these sites provide excellent access to the Sydney CBD, the airport, Port Botany, the Mascot/Alexandria interchange, the M5 Motorway and will benefit from the WestConnex project when it is completed in 2023.”
For more information on Colliers, click here.