Chess Engineering has sold its long-time base in Padstow in Sydney’s southwest to a local developer for $18.93 million.
There are three high-clearance warehouses with split-level office space at the 8,039 sqm site at 101-103 Fairford Road.
It has been home to manufacturing and steel fabrication specialist for more than 40 years.
The sale, which reflects a land rate of $2,355/sqm, includes a leaseback to Chess Engineering until December 2023.
The property is directly opposite a new Bunnings store and near the M5 on- and off-ramps in Padstow, 22km from the Sydney CBD.
CBRE’s Keegan Ridings and Jon Orsborn from LJ Hooker Commercial Bankstown managed the sale campaign on behalf of Chess Engineering.
“A well-known local developer secured the site after a competitive campaign,” Ridings said.
“The property attracted more than 140 enquires and 11 offers, from a range of users including investors, developers, self-storage groups and pub operators.”
Mr Orsborn said groups were drawn to the property’s proximity to the M5 and South Sydney, as well as the significant exposure it offered.
The deal comes after a private investor bought an industrial facility in St Mary’s in Sydney’s west for $24.5 million earlier this month, trading at a 3.79% initial yield.
Recent Sydney industrial deals include Ramo’s purchase of an industrial property in Milperra in a deal worth $27 million last month.
Hines acquired four logistics properties in Sydney’s Chullora, South Granville and Emu Plains, as well as Brisbane, from Pipeclay Lawson for $211.5 million last month, while Coombes Property Group bought an industrial landholding in Botany for $25.25 million.
In March, Pittwater Industrial purchased a new logistics facility in Prestons for $58.255 million, while Leda Holdings sold a 7.71-hectare industrial infill site in Milperra that was earmarked for a new multi-level logistics redevelopment.
Nationally, investment into industrial and logistics property continued at full steam during the first quarter of 2022, with deal volume totalling $4.1 billion.