St Marys complex sells for $24.5m as Western Sydney airport project continues to draw investors
An industrial complex currently home to a rubber factory has sold for $24.5m as investors continue to pour money into the Western Sydney suburbs set to benefit from the city’s second airport.
The complex in St Marys, the suburb that will be the first connection on a train line linking Western Sydney to the airport at Badgerys Creek, attracted over 90 inquiries from prospective buyers and 11 price offers.
The freestanding industrial facility on Dunheved Circuit consists of both production space, warehouse storage space and presentable office accommodation.
The sale is part of a larger flurry of activity within the region, with Colliers Sydney West team transacting on more than $85m worth of industrial assets through the first quarter of 2022.
The St Marys building was sold with a lease on a five-plus-five-year term to Nepean Rubber Mouldings Pty Limited.
Zoned IN1 Industrial, the property has a building area of 11,613sqm and has additional undeveloped land, providing an opportunity to construct further buildings on site or to redevelop entirely in time.
Carl Pearce and Matthew Flynn of Colliers sold the property, at an initial yield of 3.79 per cent.
“The property was extremely well received during the sale campaign, attracting significant interest given the long-term leaseback to a well-established business, in a well-connected in-fill industrial precinct.
“The property was purchased by a private investor with the view of holding on to the property for future growth and potential redevelopment,” Mr Pearce said.
The agent added that the sale set a new benchmark for buildings of this size and nature in St Marys.
It also demonstrated the continued strength of the broader Western Sydney investment market in the sub-$50 million price bracket, he said.
There was a low supply of these kinds of properties and huge demand from investors, owner occupiers and developers, Mr Flynn said.
“As a result of running multiple competitive sale campaigns during Q1 2022, we have generated a list of some 600+ active buyers, all of whom are keen to learn of new opportunities to buy,” Mr Pearce said.
Demand over the first quarter was broadly spread across the Western Sydney submarkets, albeit with the Outer West and South West being the most active, Colliers research showed.
The lack of leasing options also continues to push rents higher, with prime rents in Western Sydney growing by an unprecedented rate through the quarter.