Strong investor interest has underpinned the successful auction sales of two western Sydney industrial properties for a combined total of close to $9 million.
In the larger of the two deals, a Penrith warehouse at 63 Leland Street sold under the hammer for $4,755,000, reflecting a yield of 5.01%.
A Kings Park office warehouse at 9 Melissa Place meanwhile sold for $4,105,000.
CBRE’s Brendan Wein, Matthew Alessi and PRD’s Rob Tappouras, Jay Morosi negotiated the Penrith sale on behalf of Rise Projects
A private investor acquired the tenanted, 1,791sqm warehouse, which offers clearance heights of up to 7.5 metres, modern office space with excellent natural lighting, high power supply of 1200 amps and a generous concrete forecourt for loading
Mr Wein noted; “With five year’s remaining on the existing lease, bidding was highly competitive, underpinned by the limited availability of investment stock in this size and price range.”
The auction sale of Melissa Place was negotiated by CBRE’s Mr Wein and Matthew Alessi. The 1,649sqm office/warehouse was sold on behalf of a private client to Napier Holdings Pty Ltd.
“The industrial market has been extremely resilient and this, coupled with record low interest rates and limited land supply in the short to medium term, has attracted strong interest in available investment opportunities,” Mr Alessi said.
The Kings Park campaign generated 125 enquiries, with six registered bidders and 48 bids resulting in a sale price that was $100,000 over the reserve - equating to a 5.25% yield.
“Given the tightly held nature of the location and the fact that the lease is at market rents with an upcoming lease expiry, the property was highly sought-after by both owner occupiers and investors,” Mr Alessi said.
The property offers clearances of up to 6.4 metres, access via two container height roller doors and two-level office accommodation as well as a concrete forecourt enabling excellent container loading/unloading.
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.
