The freestanding industrial facility at 54-74 Dunheved Circuit has production space, warehouse storage space and office accommodation across 11,613 sqm. It is leased on a five-plus-five-year term to Nepean Rubber Mouldings Pty Limited.
With IN1 industrial zoning, the property also has additional undeveloped land, providing an opportunity to construct further buildings on site or to redevelop entirely in time.
Carl Pearce and Matthew Flynn of Colliers sold the property, at an initial yield of 3.79%. With the sector’s sales doubling over 2021, prime yields in Sydney have tightened to an all time low, recording yields between 3.25% to 4.75%.
More than 90 enquiries were received during the campaign for 54-74 Dunheved Circuit, generating 30 inspections and 11 offers to purchase.
“The property was extremely well received during the sale campaign, attracting significant interest given the long-term leaseback to a well-established business, in a well-connected in-fill industrial precinct,” Pearce said.
The purchaser is a private investor who will hold on to the property for future growth and potential redevelopment.
“This sale has set a new benchmark for buildings of this size and nature in St Marys and demonstrates the continued strength of the broader western Sydney investment market in the sub-$50M price bracket,” Flynn said.
Western Sydney saw a 20% surge in land values for one to five-hectare lots over the March quarter, according to Knight Frank.
Colliers data shows demand over the period was broadly spread across the western Sydney submarkets, with the outer west and south west being the most active.
The lack of leasing options also continues to push rents higher. Rents are going up by $5 per sqm each month in some of the tightest-held markets, like western Sydney. Speaking to Australian Property Journal’s Talking Property podcast,
MaxCap Group’s David Oudshoorn discussed the significant amount of industrial development that will take place around the future Sydney Airport in Badgerys Creek.
