Realterm expands in western Sydney with $89m industrial property deal
Realterm has acquired 5-9 Lancaster Street at Ingleburn.
Global investment manager Realterm has bolstered its Sydney portfolio with the acquisition of two major industrial assets in the western suburbs of Revesby and Ingleburn.
The purchases add about $89m to its local portfolio and back its momentum across Sydney’s tightly held southwest industrial corridor. The assets will be slotted into Realterm’s second Australian fund, that was launched in May.
Realterm bought 5-9 Lancaster Street, Ingleburn, from Oakvell Property Pty Ltd, for $39.8m, in a deal showing a lift on the last trade four years as the area takes off. The asset was sold by Elijah Shakir of ReVest Property Group.
The 23,900sq m truck terminal has a 10,900sq m warehouse with drive-through and drive-around capability, as well as excess hard stand for truck and trailer parking.
Ingleburn is an established logistics market with limited vacancy and sits near the M5/M7 motorway intersection and the Hume Highway, so is well connected to Melbourne, the outer western Sydney industrial markets, as well as Port Botany.
The group has also purchased 2A Mavis Street, Revesby, from SB Investments, for $50m, according to property records. The private vendor is associated with Sydney investors George Shad and Joe Baladi, who also own retail assets, according to company documents.
The prime 27,447sq m industrial outdoor storage site sports good access to the M8/M5 motorway network. It is leased to ASX-listed business Acrow who have occupied the site for over 15 years.
Sites of such scale and functionality are scarce in Sydney’s tightly held infill industrial market, where competition for low site coverage landholdings continues to intensify. Trent Gallagher and Hamish Miles of Colliers aided Realterm with this transaction.
Realterm’s recent leasing success at 77 Governor Macquarie Drive boosted its conviction in this market and showed the ongoing depth of tenant demand for well-located, functional industrial space. The acquisitions increase Realterm’s Sydney portfolio to five assets, reinforcing Realterm’s strategy of aggregating functional, hard-to-replicate industrial assets in infill locations where supply remains deeply constrained. The company is one of a series of industrial players expanding in Sydney.
“Revesby adds a high-quality IOS site supported by compelling property fundamentals, while Ingleburn provides a differentiated logistics facility with strong underlying land value,” Realterm’s fund manager, Australia, Toni Ryan, said.
“The addition of these assets strengthen our platform and deepen our exposure to assets that are operationally critical to transport and logistics users.”
Realterm head of investments, Australia, Charlotte Brabant, said: “Our pace of deployment reflects both the depth of opportunities we are identifying and our conviction in Sydney’s southwest industrial corridor. The fundamentals across rental growth, tenant demand and scarcity of these low site cover sites continue to validate our strategy, and these assets align perfectly with our fund’s objectives.”
