A private investor has bought an industrial facility in St Mary’s in Sydney’s west for $24.5 million, trading at a 3.79% initial yield.

The 54-74 Dunheved Circuit property comprised 11,613 sqm of building area, including production space, warehouse storage space and office accommodation. St Mary’s is about 45 kilometres west of the Sydney CBD. 

The building was leased to Nepean Rubber Mouldings on a five-plus-five-year term.  

The property was zoned IN1 Industrial and situated on a 28,090 sqm site, with additional undeveloped land available for further development. 

Colliers’ Carl Pearce and Matthew Flynn sold the property, which attracted more than 90 enquiries and 11 offers.  

“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,” Pearce said.  

“The property was purchased by a private investor with the view of holding on to the property for future growth and potential redevelopment.” 

Flynn said the sale had set a new benchmark for buildings of its size and nature in St Marys and demonstrated the continued strength of the broader Western Sydney investment market in the sub-$50 million price bracket.   

“With supply of properties to buy at record lows and huge demand from investors, owner occupiers and developers, there has never been a better time to take advantage of current market conditions,” Flynn said. 

Colliers said more than $85 million worth of industrial assets had been sold within the western Sydney region through the first quarter of 2022.   

“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,” Pearce said. 

The lack of leasing options also continued to push rents higher, with prime rents in Western Sydney growing by an unprecedented rate through the quarter. 

Recent Sydney industrial and logistics transactions include Ramo’s purchase of an industrial property in Milperra in a deal worth $27 million earlier this 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. 

Last month, 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.  

In February, Logos, KKR and Mubadala Investment bought industrial development sites in Sydney and Melbourne, while Centuria Industrial REIT purchased a portfolio of six urban industrial assets located across Melbourne, Sydney and Brisbane in January. 

Nationally, investment into industrial and logistics property continued at full steam during the first quarter of 2022, with deal volume totalling $4.1 billion.