A private investor has bought a prime industrial site in Sydney’s southwest for more than $20 million, selling in just seven days.
The property at 321 Milperra Road in Milperra extends across 19 titles on a 14,500sqm site, with a building area that covers only 53 per cent of the site.
The asset, which is occupied by Australian auction company Pickles on a three-year lease, is one of the last remaining flagship industrial sites left in the southwest industrial precinct.
Colliers team of Angus Urquhart and Trent Gallagher managed the sale.
“The southwest Sydney industrial land market has never been this strong and is underpinned by record low-interest rates and a laser focus on the industrial product line where investors and developers want to buy land to re-develop into multi-level industrial strata,” Gallagher said.
“We are also seeing a continued drive from South Sydney buyers and tenants looking into the core southwest industrial markets in search of better value,” Urquhart said.
Gallagher said the region had gone from strength to strength this year, as buyers competed for scarce industrial land.
He said this was expected to continue into 2022 off the back of some monumental deals at the back-end of the year.
The deal comes after Blackstone agreed to buy GIC’s 49% stake in the Dexus Australian Logistics Trust for about $2.1 billion this week.
Recently, SC Capital Partners’ bought an industrial asset on the Gold Coast for $23.2 million, while Centuria Industrial REIT acquired a portfolio of four industrial properties across Sydney, Melbourne and Brisbane for $129.4 million.
There has been strong investor and occupier appetite for industrial and logistics properties nationwide, with the industrial vacancy rate across Australia’s five major cities falling to a historic low of 1.3%.