Stockland has bought two logistics sites in Sydney’s southwest for $128.5 million, adding to its more than $3 billion logistics pipeline.
The sites are located at 110 Gow Street, Padstow and 122 Canterbury Road, Bankstown, and are fully leased with a weighted average lease expiry (WALE) of 2.2 years.
The combined 5.5-hectare site has access to Sydney Airport and major road networks connecting to all of metropolitan Sydney.
Stockland Commercial Property CEO Louise Mason said these acquisitions were aligned with their strategy to increase their exposure to premium logistics sites along the eastern seaboard.
“Demand for logistics leasing, particularly from e-commerce businesses, continues to be strong,” Mason said.
“These acquisitions further increase our weighting in one of the most land constrained and attractive logistics markets in Sydney’s south west with immediate rental income and redevelopment potential.”
Stockland Executive General Manager of Workplace & Logistics Tony D’Addona said the demand and supply fundamentals for quality logistics assets along the eastern seaboard remained strong.
“With a shortage of premium warehouse and distribution sites available in Sydney adjacent to key transport corridors, these sites provide excellent access to the Sydney CBD, the airport, Port Botany, the Mascot/Alexandria interchange, the M5 Motorway and will benefit from the WestConnex project when it is completed in 2023,” D’Addona said.
Trent Gallagher and Hamish Miles of Colliers transacted the sale.
Trent has provided the following comments.
“This is a landmark deal for the region especially after the record-breaking Qantas sale in nearby Mascot,” Gallagher said.
“With that site being earmarked for future multi-level logistics facilities, other sites like this one in Padstow with similar development potential are in high demand.
“The site is fully leased providing a net yield of 4.28 per cent yet has huge future scope for redevelopment as the existing leases expire soon.
“It is also situated close to major transport links like the WestConnex, M8 Motorway and M5 Motorway.”
Ben Fairfax from Formus Property was also the private vendor’s advisor on the transaction.
Other industrial deals in Sydney’s southwest include a private investor’s acquisition of a prime industrial site in Milperra for more than $20 million this week.
Earlier this month, LBP Developments sold a prime industrial development site in Revesby to a private developer for $16.3 million.
There have also been some significant industrial portfolio deals such as Blackstone’s purchase of GIC’s 49% stake in the Dexus Australian Logistics Trust for about $2.1 billion this week, and Centuria Industrial REIT’s acquisition of a portfolio of four industrial properties across Sydney, Melbourne and Brisbane for $129.4 million in November.