CBRE says it is working with Colliers to market one of Sydney’s largest ever infill industrial and logistics sites which could have a potential end value of more than $1 billion.
It notes a landmark ‘last mile’ industrial and logistics estate could be created at the sought-after Rosehill Central site.
CBRE’s Jason Edge and Michael O’Neill together with Colliers International’s David Hall and Tony Durante, have been appointed to market the vacant 25.6ha site, which is located diagonally opposite Rosehill Racecourse.
Michael says institutional developers had a strong focus on infill development sites, with more than $500 million in central western Sydney transactions this year.
“The successful Rosehill Central purchaser will be able to capitalise on the lack of competing stock in the market and the huge volume of enquiry for industrial and logistics space in Sydney’s central west, which has accelerated by 20 per cent due to rising e-commerce penetration,” Michael says.
“There is more than 200,000 sqm of pent-up tenant demand in the central west market with a vacancy rate of just 0.34 per cent,” he adds.
“These market fundamentals have triggered 10 per cent rental growth in Q1 2022 alone, with minimal new stock expected until 2024.”
CBRE says the land was once part of the former Shell site and it can be sold in one line or as individual or multiple serviced lots, with the potential to deliver more than 140,000 sqm of space.
It is Zoned IN3 Heavy Industrial with the land offering a broad range of permitted uses. The approved 13-lot subdivision allows for sites ranging in size from 8060 sqm to 36,330 sqm.
David says the Rosehill Central site represents one of the last remaining large scale industrial and logistics development sites east of Parramatta.
“This location provides seamless access to the densely populated centres of Sydney, creating the perfect last mile logistics location and an exceptionally efficient e-commerce location supported by lower inbound and outbound transportation costs, lower toll costs and proximity to population and key logistics infrastructure,” David says.
CBRE notes the property is on the corner of Devon Street and Colquhoun Street while Rosehill Central is situated near James Ruse Drive, Victoria Road, and the M4 Motorway and within 4.3km of the Parramatta CBD.
The investment management firm says it is being offered for sale in tandem with an unprecedented $93.3 billion NSW Government infrastructure spend in Western Sydney, which is creating improved connectivity with South Sydney.
It adds that Stage 3 of the WestConnex is scheduled for completion in 2023 and will deliver an estimated drive time saving of 40 mins between the Western Sydney and South Sydney and accelerate rental growth in the Central West.
The company notes expressions of interest close on June 14, 2022.
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