An owner occupier has purchased a tenanted industrial facility at Wetherill Park for more than $16 million amid limited supply of built form facilities in western Sydney.
Located at 8 Kellaway Place, the 5,715 sqm site incorporates a 3,642 sqm full height concrete warehouse with access via two roller shutter doors.
Akzo Nobel, a Swedish paints and performance coatings company, occupies the site with a lease expiring October 2023.
With a passing rental of $515,000 net per annum, the sale price reflects a 3.31% yield with a pending lease expiry.
CBRE’s Janet Joljian and Elijah Shakir brokered the deal via private treaty.
“The property consists of an industrial freestanding site split into two tenancies, ultimately providing an opportunity to occupy or re-position upon lease expiry,” Joljian said.
“The purchaser was attracted to the building due to the ability to occupy one tenancy and receive uplift in rental within the other tenancy.”
Recent deals include Grove Group Investments’ sale of an industrial land holding in Penrith in Sydney’s Outer West for $9.085 million, representing a 121% uplift within two and a half years of purchase.
The 15 Hickey Road property comprised an 8,219 sqm industrial lot that was originally purchased for $4,109,500 in August 2020 as part of an 11-lot subdivision.
In February, property fund manager Centennial secured a 13,270 sqm industrial site in Brisbane’s sought-after Australia TradeCoast industrial precinct in Pinkenba for $15.6 million.
Located at 680 MacArthur Avenue, the site bookends two adjoining sites owned by Centennial to form the newly created MacArthur Industrial Estate.
Australia’s industrial leasing market has gone from strength to strength, with ongoing high demand from industrial occupiers amidst a lack of supply driving widespread rental growth.
Knight Frank research released in March found that vacancy rates were still at record low levels, with 547,748 sqm available across the Eastern Seaboard capital cities.