Aon Ari Property Trust has appointed CBRE to sell two industrial sites, representing a circa $45 million investment opportunity in Sydney’s burgeoning western suburbs.
CBRE’s Jason Edge, Elijah Shakir and Michael O’Neill will market the premium assets - 66 Christina Road, Villawood and 30 Loftus Road, Yennora – which are available for purchase in one line.
66 Christina Road, Villawood comprises a fully leased, multi-tenanted building with a WALE of 3.3 years and a net passing income of $1,668,019
30 Loftus Road, Yennora is fully leased and spans over 8,052 sqm of building and sits on over 22,000 sqm of land. The property underwent a significant $4 million refurbishment and redevelopment in 2017, and is underpinned by a 4.8 year WALE and a net income of $1,360,131.
Both assets are multi-tenanted and are strategically located near Leightonfield and Yennora train stations respectively.
Mr Edge said the opportunity offered astute buyers further potential upside, either through rental growth or additional development.
“While Villawood and Yennora were once considered as secondary locations, the significant shortage of land and urban growth in Sydney means both areas are now viewed by occupiers as prime, strategic infill locations, supported by strong transport connectivity to the Sydney CBD,” Mr Edge said.
“The strong growth in rent and land values in both markets has seen stronger interest from investors over the past year, with major institutional players growing their portfolios with key acquisitions.”
Mr Shakir added: “Income producing assets within the inner western Sydney regions have been hard to come by in the past year, particularly multi-tenanted estates that are land rich and positioned within close proximity to rail and transport.”
According to CBRE’s Q4 Industrial & Logistics MarketView, strong market conditions including heightened demand, lack of available stock, underlying land value growth and continued rental growth has caused driven yield compression throughout Greater Sydney. Notably, the report found yield spread between Sydney and other major markets is now at its widest on record. Meanwhile, land value growth in Sydney is up 13.9% annually over the past five years.
Expressions of Interest campaign for 30 Loftus Road, Yennora and 66 Christina Road, Villawood are available via an Expressions of Interest campaign.
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.