Diversified real estate services provider and fund manager, Aliro, has bought adjoining sites in Sydney’s South-West logistics corridor in a combined $60.5m purchase that adds 49,100sqm to its industrial portfolio.

The sites, at 24 and 30-40 Alfred Road Chipping Norton, house a manufacturer on a five-year lease and a trucking terminal with multiple short-term lease operators, respectively. The sites offer development upside under a heavy industrial zoning.

The sale was achieved off-market through LJ Hooker Commercial Bankstown Director Ryan Jennings and is only one of a handful of large-scale infill sales to transact in the South West in 2021.

The strategic acquisition by Aliro comes as the region – like other industrial corridors - recorded an uplift in prices amidst the pandemic. LJ Hooker Commercial’s recent Industrial Market Monitor predicted the trend to continue: prime values could rise by 21% to mid-2024 while secondary could increase by as much as 17%.

The site benefits from proximity to arterial roads and key infrastructure making it a strategic location to cater to future demand from ‘last-mile’ industrial occupiers. It is understood Aliro intends to re-develop the site into a modern industrial estate following lease expiries.

Mr Jennings said: “Alfred Road offers excellent access to the M5, Henry Lawson Drive and the Moorebank Intermodal. Liverpool CBD is less than a 10-minute drive away, offering further amenity”.

“There’s significant upside across both sites. There’s no stock of scale in the market and investors are actively seeking off-market opportunities to realise their plans.

“With increased demand from the e-commerce sector and limited sites available, South West infill locations such as Chipping Norton are now in the spotlight, more than ever.”

The acquisition represented a blended land rate of $1,232psm.

To request a sales analysis please contact the selling agent LJ Hooker Commercial Bankstown Director Ryan Jennings via the below contact details.