A portfolio of six industrial assets in Western Sydney – known as the Sydney Six – has sold for $71 million after a highly competitive sale campaign.
The portfolio – comprising four Wetherill Park assets, a Smithfield property and an Eastern Creek site – boasts a total NLA of 45,850sqm and an annual income of $4.82 million.
All six assets are 100% leased, with the portfolio offering a WALE of 1.95 years at the date of exchange.
CBRE and Colliers managed the sale campaign on behalf of Simonson Properties, with the sale representing a record price in relation to the short WALE and lease expiry profile.
Colliers’ Gavin Bishop, who was also responsible for Western Sydney’s recent high profile sale at Minchinbury for $161 million, said the infrastructure investment in Sydney’s west continued to provide confidence to the market.
“Buyers, both domestic and abroad, see value in the medium and long term growth of the Sydney market, particularly the west where the unprecedented investment in infrastructure continues to attract various capital sources,” Mr Bishop said.
CBRE’s James Santi said the result highlighted the strength of demand for investment stock that continued to outweigh supply in Sydney’s tightly held industrial market.
“With a total of 19 offers received, it is evident that there remains incredibly strong demand for Sydney assets from a broad range of purchasers – a trend that is further underlined by the limited supply of investment grade assets in the market at present,” Mr Santi said.
“Buyers are actively seeking risk given the strong occupier market and rental growth prospects. The vendor was able to take advantage of the abundance of capital and record low yields, to achieve a strong result for this portfolio.”
CBRE’s Elijah Shakir added: “The purchaser was attracted to the portfolio’s multiple exit strategies and concentration in the strong performing Wetherill Park market where we continue to see rental growth, falling incentives and short vacancy periods.”
The portfolio comprised the following assets:
• 160-162 Newton Road, Wetherill Park – 13,233sqm leased by Yusen Logistics; Sharp Corporation of Australia
• 8 Hexham Place, Wetherill Park - 3,217sqm leased by Amgrow
• 488-490 Victoria Street, Wetherill Park – 8,795sqm leased by Vivin Imports
• 484-486 Victoria Street, Wetherill Park – 12,973sqm leased by Vivin Imports; Bracknells Warehousing & Distribution
• 87-91 Victoria Street, Smithfield – 3,700sqm leased by Batteries Included; Action Aluminium NSW
• 6 Shale Place, Eastern Creek – 3,933sqm leased by Brighton-Best International
The portfolio – comprising four Wetherill Park assets, a Smithfield property and an Eastern Creek site – boasts a total NLA of 45,850sqm and an annual income of $4.82 million.
All six assets are 100% leased, with the portfolio offering a WALE of 1.95 years at the date of exchange.
CBRE and Colliers managed the sale campaign on behalf of Simonson Properties, with the sale representing a record price in relation to the short WALE and lease expiry profile.
Colliers’ Gavin Bishop, who was also responsible for Western Sydney’s recent high profile sale at Minchinbury for $161 million, said the infrastructure investment in Sydney’s west continued to provide confidence to the market.
“Buyers, both domestic and abroad, see value in the medium and long term growth of the Sydney market, particularly the west where the unprecedented investment in infrastructure continues to attract various capital sources,” Mr Bishop said.
CBRE’s James Santi said the result highlighted the strength of demand for investment stock that continued to outweigh supply in Sydney’s tightly held industrial market.
“With a total of 19 offers received, it is evident that there remains incredibly strong demand for Sydney assets from a broad range of purchasers – a trend that is further underlined by the limited supply of investment grade assets in the market at present,” Mr Santi said.
“Buyers are actively seeking risk given the strong occupier market and rental growth prospects. The vendor was able to take advantage of the abundance of capital and record low yields, to achieve a strong result for this portfolio.”
CBRE’s Elijah Shakir added: “The purchaser was attracted to the portfolio’s multiple exit strategies and concentration in the strong performing Wetherill Park market where we continue to see rental growth, falling incentives and short vacancy periods.”
The portfolio comprised the following assets:
• 160-162 Newton Road, Wetherill Park – 13,233sqm leased by Yusen Logistics; Sharp Corporation of Australia
• 8 Hexham Place, Wetherill Park - 3,217sqm leased by Amgrow
• 488-490 Victoria Street, Wetherill Park – 8,795sqm leased by Vivin Imports
• 484-486 Victoria Street, Wetherill Park – 12,973sqm leased by Vivin Imports; Bracknells Warehousing & Distribution
• 87-91 Victoria Street, Smithfield – 3,700sqm leased by Batteries Included; Action Aluminium NSW
• 6 Shale Place, Eastern Creek – 3,933sqm leased by Brighton-Best International
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), 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 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 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.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), 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 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 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.
