A TENANTED industrial facility at Wetherill Park in Western Sydney has sold to an owner occupier for more than $16M.
Spanning 5,715sqm the freestanding site at 8 Kellaway Place is amongst limited supple of built form facilities in Western Sydney and includes two separate units of 1,507sqm and 2,135sqm for a combined 3,642sqm full height concrete warehouse with access via two roller shutter doors.
Janet Joljian and Elijah Shakir from CBRE managed the sale of the facility via private treaty.
“The property consists of an industrial freestanding site split into two tenancies, ultimately providing an opportunity to occupy or re-position upon lease expiry,” said Joljian.
The site is currently occupied by Swedish paints and performance coatings company, Akzo Nobel, with a lease term set to expire in October 2023 and a Dangerous Goods license.
The lease brings in a passing rental of $515,000 net per annum, with the sale price reflecting a 3.31% yield with a pending lease expiry.
“The purchaser was attracted to the building due to the ability to occupy one tenancy and receive uplift in rental within the other tenancy,” concluded Jolijian.
The site is zoned IN1 General Industrial, with crane rails, gantry cranes and High power supply in the tight market of the core industrial precinct of Wetherill Park, offering the new owner corporate headquarter appeal.
Recent activity in Sydney’s industrial market has seen Vaughan Constructions appointed to deliver Hale and LaSalle Investment Management’s ramp-up industrial facility at Matraville, in one of Australia’s first large-scale multi-level warehouse developments.
With the NSW capital seeing industrial vacancies fall by 31% in 2022, reaching a country low for availability at just 89,129sqm, leading prime rents to grow by grew 12% over Q4 2022 and 29% over the year.
- Australian Property Journal.
