Grove Group Investments have sold 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. 

Located at 15 Hickey Road, the 8,219 sqm industrial lot was originally purchased for $4,109,500 in August 2020 as part of an 11-lot subdivision.  

The land was sold to a local owner occupier looking to expand their business.   

CBRE’s John Micallef and PRD Commercial’s Rob Tappouras brokered the recent transaction via an off-market sale.  

“The vendor had plans to develop the site, but several attractive offers were put forward resulting in a joint decision to sell the asset. This provides evidence of the lack of small industrial lots available in Western Sydney,” Micallef said.  

“The large lift in valuation over that past two and a half years is reflective of the severe shortage in industrial land in Western Sydney, and continuous demand from industrial businesses to grow their footprint in order to continue servicing the growing population.”  

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.   

Recent Knight Frank research found that vacancy rates were still at record low levels, with 547,748 sqm available across the Eastern Seaboard capital cities.  

This followed a 56% drop in availability over the 2022 calendar year and an 8% fall over Q4 2022. Sydney remained the tightest market with 89,1292 sqm of available stock, followed by Brisbane with 226,916 sqm and Melbourne with 231,640 sqm.   

The deal comes after Goodman recently started construction on a new purpose-built industrial property at Redbank Motorway Estate in south-west Brisbane to be leased to supply chain business CHEP on a 15-year lease.