Leda Holdings has sold a 7.71-hectare industrial infill site in Milperra in Sydney’s west that is earmarked for a new multi-storey logistics redevelopment.
Leda originally acquired the property, located at 270-286 Horsley Road, for $52 million in 2018. The latest sale price and buyer were not disclosed.
The purchaser plans to redevelop the site into a multi-level logistics estate, the first of its kind within the immediate area.
“Leda are looking to continue their long-proven strategy in targeting large-scale infill sites for development or repositioning,” Leda Holdings Managing Director Rob Ell said.
“We have been extremely active over recent years rolling out this strategy.
“Some of our major acquisitions include 32 Cawarra Rd, Caringbah (ex. J&J manufacturing site), 1 Box Road, Taren Point, 247 King St, Mascot, and 19-21 Loyalty Rd, North Rocks.”
Colliers said multi-storey warehousing would spread into more areas of the city, with schemes already underway in South Sydney.
The wave of new projects could dramatically intensify land use and see new logistics hubs spring up.
Colliers’ Gavin Bishop, Trent Gallagher and Sean Thomson negotiated the off-market sale exclusively.
“The Australian industrial and logistics sector has recorded phenomenal growth over the past two years, supported by macroeconomic tailwinds which have underpinned both occupier and investment demand,” Gavin Bishop, Managing Director of Industrial and Head of Industrial Capital Markets at Colliers, said.
Trent Gallagher, National Director Industrial at Colliers, said demand for industrial land in Sydney continued unabated, as institutional groups adopted a build-to-core strategy.
“Continued yield compression and limited buying opportunities have made it more challenging to acquire stabilised assets, and as a result, major institutions seek brownfield redevelopment opportunities,” Gallagher said.
“The e-commerce phenomenon has created an unprecedented level of demand for logistics infrastructure, with assets and sites of scale positioned within infill locations trading for premiums, as investors capitalise on the strong rental growth prospects,” Sean Thomson, Head of Industrial Capital Markets NSW at Colliers, said.
Recent industrial deals in Sydney include Logos, KKR and Mubadala Investment buying industrial development sites in Sydney and Melbourne with a combined end value of $640 million last month.
The transaction comes after Centuria Industrial REIT purchased a portfolio of six urban industrial assets located across Melbourne, Sydney and Brisbane worth a combined end-value of $132.4 million last month.
Other recent industrial deals include Stockland’s acquisition of two logistics sites in Sydney’s southwest for $128.5 million and LBP Developments’ sale of a prime industrial development site in Revesby to a private developer for $16.3 million.