Centuria takes large-scale infill distribution centre to market
Property funds manager Centuria has listed for sale a large-scale distribution centre in Western Sydney housing a blue-chip tenant, with pricing expectations in the mid-$20 millions.
The South Granville 15,302sqm facility, situated on a 26,740sqm site, is tenanted by ASX-listed BlueScope Steel. It enjoys proximity to the Hume Highway and M4 Western Motorway and has been used to optimise the flat steel producer’s operations throughout the western corridor.
LJ Hooker Commercial Silverwater Director, Marcel Elias, and Colliers International’s National Director, Gavin Bishop & Manager Capital Markets, Sean Thomson, have been appointed to manage the expressions of interest campaign, which closes Thursday, 18 October 2018.
Investment opportunities with listed tenants had seldom come to the marketplace through western Sydney’s infill catchment in the past two years. BlueScope Steel pays approximately $1.5m per annum net, with a 7-year option following the current lease expiry date.
Well-appointed, large-scale infill assets have become highly sought-after in Sydney on the back of 65,000sqm of industrial property being withdrawn in the last 12 months for residential repurposing in the city’s central-west and south.
At the same time, industrial markets are being well supported by economic tailwinds and the growth of e-commerce and last mile logistics.
“Given the low interest rate environment and robust economic fundamentals in Australia, accompanied by the weight of capital chasing industrial investment product, significant demand for this asset is anticipated,” said Gavin Bishop, National Director of Industrial at Colliers International.
“Investors have rarely been presented with the opportunity to acquire a Sydney industrial asset of scale, within the tightly held market. There was strong demand for industrial investment sales in 2017 across Victoria with transaction volumes up 43%, whilst New South Wales sales were down 18% due to the limited availability of stock on the market, further highlighting the pent-up demand in this sector.”
Industrial remains an attractive asset class for investors. Consequently, the lack of quality industrial premises brought to market has created investor competition, driving down yields over the last year.
Mr Elias said: “Centuria has recognised the shortage of infill assets on the market and are looking to realise market value with an ASX-listed tenant attached”.
“The facility at 13 Ferndell Street will be one of the few premier infill industrial sites listed for sale in Australia this year in terms of scale, quality and proximity to arterial road networks.
“A central part of Centuria’s positive FY18 results was the performance of its in-house asset management team. Their Ferndell Street asset has been maintained to an exceptional standard, allowing Bluescope’s operations to run effectively. The future landlord can have great confidence in the management program that Centuria has undertaken at the address.”
For more information on 13 Ferndell Street South Granville, contact Marcel Elias on 0488 88 44 11, Gavin Bishop on 0401 146 051 or Sean Thomson 0418 943 452
For media information:
PR & Communications Consultant
LJ Hooker Commercial
M: 0427 916 020