One of the last remaining infill industrial sites in Western Sydney has been sold as buyers compete for available development opportunities.
CBRE’s Jason Edge and John Micallef negotiated the sale of the 201-203 Power Street, Glendenning site on behalf of Valspar (Australia) Corporation Pty Ltd following a highly competitive Expressions of Interest campaign.
“We received substantial interest from institutional and private developers during the process, which is reflective of the shortage of serviced industrial land available in Western Sydney,” Mr Micallef said.
“The size of the site and its core location in Sydney’s land constrained Glendenning industrial and logistics precinct were key drivers of buyer interest, with the property offering high exposure to the M7 motorway and significant development potential.”
The 5.2497ha site currently features a small office/laboratory building of approximately 2,000sqm and associated parking. It was offered for sale with vacant possession.
The property provides 185 metres of frontage to Power Street and efficient connections to surrounding major arterial road networks, including the M7 Westlink Motorway, M4 Western Motorway and Great Western Highway
Mr Edge said the strong buyer interest highlighted the scarcity of industrial land in Western Sydney, which had translated to low levels of new industrial & logistics development.
For instance, in Q1 2020 just 153,000 sqm of new industrial supply was added - 76% below the 647,000sqm of stock added in Q1 2019.
“Industrial demand throughout Sydney remains very strong as companies continue to refine their supply chains,” Mr Edge said.
“This has led to significant interest in available sites in core markets as developers look to unlock value in a tight market. In tandem, values have grown 4.5% y-o-y, with the majority of the growth occurring in western Sydney.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 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.
