Gibb Group, Fife snare Sydney industrial investments
Two major industrial deals have been sealed in Sydney.
In the biggest, billionaire Bob Ell is reaping $50 million from a 4.6 hectare Mount Druitt asset held and value-added to, since 2016.
Melbourne based Gibb Group is the buyer.
The result reflects a five per cent net passing yield.
It also prices each square metre of gross lettable area at $2744.
CBRE’s Elijah Shakir and Jason Edge were the agents.
Also today we are reporting Garda selling a Brisbane industrial investment worth 22 per cent of its portfolio value.
Deal below replacement value
Leda repositioned and upgraded the Mount Druitt asset, 91 Kurrajong Avenue, including adding a 2500 square metre warehouse to vacant tract,
All up with c18,200 sqm, also with offices, it is leased it to multiple businesses including Anglican Community Services, Warehousing Solutions, Paramedical and Sunnyfield.
Surplus hardstand is presently rented to Earthworx.
“The area is very strong with great amenities; it’s close to a Westfield shopping centre and major infrastructure,” Leda managing director, Rob Ell, said.
“It’s a great log term asset,” he added.
Gibb Group is buying the property below replacement cost with the passing income (story continues below).
“The location is also due to benefit from significant infrastructure upgrades,” Mr Shakir added.
“The sale highlights the ongoing focus that buyers have for Sydney logistics [assets] with the majority of capital remaining focused on core plus or value add opportunities,” he said.
The site also faces Wainwright Rd.
Mount Druitt is about 30 kilometres west of Sydney’s CBD.
Fife buys in Matraville
Meanwhile Fife Capital is paying $36.5m for a 1.6ha block in south Matraville (pictured, top).
Covering 60-66 Perry Street and 1 Kelly Street – the latter component, a 506 sqm vacant tract offering immediate development upside – the vendor was Orcades Investments, which held 50 years.
With 9838 sqm of improvements, the weighted average lease expiry by income is 3.3 years.
The result reflects a 4.3pc passing yield (though the annual income is considered below market, at $1.58m).
The market yield is 7.2 pc.
Matraville is about nine kilometres south east of the CBD.
The Agency’s Michael Laing with Colliers’ Michael Crombie, Trent Gallagher and Sean Thomson were the agents.
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