VISY nets $17.25m from Penrith industrial sale
Global packaging giant VISY has offloaded a major Penrith industrial facility in a deal worth more than $17 million.
Sandran Property Group acquired the 42,210sqm industrial site for $17.25 million, more than doubling Sandran’s holdings in the western Sydney suburb.
VISY, which operates a glass and recycling sorting facility from the site at 126 Andrews Rd, will continue to operate its existing 8056sqm warehouse there for the next seven years under a leaseback agreement with renewal options.
VISY’s tenancy will return $1 million annually to Sandran, representing a 5.79% passing yield.
Sandran, which currently holds over 70 properties in its portfolio, already has hooks in Penrith. The group also holds 15,500sqm of office space at 121 Henry St in Penrith’s CBD, as well as a proposed office development at 50 Belmore St with 11,500sqm of planned floor space.
“We believe Western Sydney and Penrith is leading the future of employment in Sydney and our medium to long term outlook for the area is very positive,” Sandran managing director William Phillips says.
“The population fundamentals of Penrith are strong, it’s well connected by public transport and major arterial roads and the new Western Sydney Aerotropolis will bring even greater opportunities for employment and growth.”
JLL, which tapped to sell the VISY site in conjunction with Colliers International, says Penrith represents a ripe opportunity for industries looking to expand.
“Demand for Australian industrial and logistics assets remains strong, with recent world events highlighting the importance of supply chain networks in providing vital goods to the community,” JLL head of capital markets, industrial and logistics, Tony Iuliano says.
“The continued and on-going growth of e-commerce and low cost of debt will ensure that the industrial sector continues to underpin the strength of the industrial and logistics landscape, not just nationally but globally.”
“Western Sydney’s strong economic base, booming residential growth, urban expansion and commercial enterprise is driving the Sydney industrial market.”