Potts Hill Group has sold an industrial/commercial development site in southwest Sydney to a local developer for $32 million.
The 18,900 sqm site was located at 10 Nelson Short Street in Potts Hill, about 21km southwest of the Sydney CBD.
The property directly adjoined the Chullora industrial precinct and provided two additional street frontages to Graf Avenue and Brunker Road.
The deal, which was negotiated by Demi Carigliano, Anthony Pirrottina and Darren Benson of Knight Frank, delivered a record sale rate in the suburb of nearly $1700 per sqm.
Carigliano said there was high demand from potential buyers for the property, with the development site market in Sydney continuing to exhibit strength.
“The campaign generated interest from a range of commercial and industrial developers, in addition to owner-occupiers seeking to secure a rare infill development site of scale in thriving metropolitan Sydney,” he said.
“With the current lack of new industrial supply, the demand for industrial development sites continues to go from strength to strength.”
Pirrottina said another benefit of the property was its flexible planning controls providing upside for a buyer.
“The property has DA approval for the construction of a substantial aged care and independent living estate comprising 157 independent living units in addition to a 67-bed care facility, medical centre and café-restaurant,” he said.
“However the current B7 Business Park zoning permits a broad range of potential uses including light industrial, office premises, warehousing, distribution centres and childcare centres, subject to council approval.”
The transaction follows Coombes Property Group’s acquisition of an industrial landholding in southeastern Sydney for $25.25 million last week, reflecting a land rate of $3,396 per sqm.
Last month, Pittwater Industrial purchased a new logistics facility in Prestons for $58.255 million, representing a capitalisation rate of 3.35%, while Leda Holdings sold a 7.71-hectare industrial infill site in Milperra in Sydney’s west.