A Melbourne-based investor has paid $10.85 million for an asset leased to Amazon in West Gosford, NSW. 

Burgess Rawson’s Head of Agency/ Partner, Yosh Mendis and Partner,Rhys Parker facilitated the sale.

Mr Mendis said the property saw strong interest and competition from investors across Australia eventually selling to an interstate investor for$10,850,000 reflecting a yield of 4.74 per cent.

Located at 9 Marstan Close the state-of-the-art property was built in 2023 and operates as an Amazon Delivery Station as part of Amazon’s last mile logistics network. It is strategically positioned near the Central Coast Highway, Pacific Highway and the M1 Pacific Motorway which now connects to Sydney via NorthConnex.

The 6,008 sqm freehold landholding comprises a brand new 2,550 sqm high clearance, logistics facility comprising of a large warehouse area, a recessed dock and two floors of light filled modern office space.

The property is leased for seven years at a net annual income of $514,565 plus GST and features fixed 3.25% annual rental increases.

Amazon is a global powerhouse, one of the top 5 most valuable companies globally, employing 1.5 million people with a market capitalisation of approximately USD $2 trillion.

Mr Mendis said this sale highlights the ongoing strength of the industrial investment sector, particularly for premium logistics assets secured by blue-chip tenants.

“Investors continue to seek strategically located premium investment properties underpinned by strong lease covenants which demonstrate stable income streams, attractive rental growth and significant tax depreciation benefits. All of these fundamentals were highlighted in Amazon West Gosford.

“Industrial assets, especially those tied to e-commerce and last-mile logistics, remain highly sought-after by investors given their continually growing necessity to a booming market segment.”

Mr Mendis added, “Given the current cost of construction, lack of availability and increasing land prices in key logistics precincts meant the low supply of new projects where the ability to secure assets such as Amazon West Gosford was becoming increasingly rare.”

Mr Parker said the sale comes at a time when demand for industrial spaces continues to soar, fuelled by the rapid growth of online shopping and the need for efficient distribution networks as well as lack of supply new industrial facilities to the market.

“Investors will benefit from stable cash flow growth as well as the strong population growth that the Central Coast is currently experiencing.”