Colliers says it has sold a large industrial site at 270-286 Horsley Road in Sydney’s industrial precinct of Milperra where a multi-storey logistics development will replace it.
Gavin Bishop, Trent Gallagher, and Sean Thomson from Colliers sold the redevelopment property off-market.
“Leda are looking to continue their long-proven strategy in targeting large-scale infill sites for development or repositioning,” Rob Ell, Managing Director of Leda Holdings says.
“We have been extremely active over recent years rolling out this strategy,” he adds.
“Some of our major acquisitions include 32 Cawarra Rd, Caringbah (ex. J&J manufacturing site), 1 Box Road, Taren Point, 247 King St, Mascot, and 19-21 Loyalty Rd, North Rocks. All of these sites were sold to Leda via Colliers, cementing the strong relationship between both firms.”
Leda Holdings bought the property from Colliers for $52 million in 2018.
Colliers says the Milperra infill land holding, which covers 7.7ha represented a unique redevelopment opportunity with significant income and 300m of street frontage to Horsley Road.
It notes that it’s rare for such a large infill holding to be on the market due to lack of supply of industrial land in South Sydney.
“The Australian industrial and logistics sector has recorded phenomenal growth over the past two years, supported by macroeconomic tailwinds, which have underpinned both occupier and investment demand,” Gavin Bishop, Managing Director of Industrial and Head of Industrial Capital Markets at Colliers says.
Colliers notes the site should get the attention of occupiers from inner-ring locations, and benefit from the predicted strong rental and capital growth.
The property firm says the buyer intends to redevelop the site into a multi-level logistics estate and will capitalise on the 1:1 FSR and unlimited height restrictions. It will be the first of its kind in that area.
“Demand for industrial land in Sydney continues unabated as institutional groups adopt a build-to-core strategy,” Trent Gallagher, National Director Industrial at Colliers says.
“Continued yield compression and limited buying opportunities have made it more challenging to acquire stabilised assets, and as a result, major institutions seek brownfield redevelopment opportunities,” he adds.
Colliers notes multi-storey warehousing will become common in more areas of the city, with plans already underway in South Sydney. It says the group of new projects could dramatically intensify land use and new logistics hubs could appear.
“The e-commerce phenomenon has created an unprecedented level of demand for logistics infrastructure, with assets and sites of scale positioned within infill locations trading for premiums, as investors capitalise on the strong rental growth prospects,” Sean Thomson, Head of Industrial Capital Markets NSW at Collier says.
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