South West Sydney’s most recognisable industrial site at 149 Airds Road Minto for sale by Colliers Gavin Bishop and Sean Thomson on behalf of a major multinational Japanese corporate.

Covering a substantial 7.68ha, 149 Airds Road presents the unique opportunity to acquire one the largest remaining industrial zoned land holdings in Sydney’s South West. The site has a price expectation of more than $55million.

Underpinned by a high underlying value, the offering benefits from a multitude of flexible future redevelopment characteristics including a significant 76,800sqm freehold land holding, substantial and expansive street frontage of 380m, secure 12-month lease back to a major multinational Japanese corporate providing a secure holding income, and a strategic location offering excellent access to existing precinct amenity and major road infrastructure including the M5 Motorway and Campbelltown Road.  

Gavin Bishop, Head of Industrial Capital Markets at Colliers, said: “Opportunities of such significant scale rarely become available within the tightly held Minto area, especially those within a major South West growth corridor. Minto is a land constrained market within proximity to large residential catchments, earmarked for strong rental / capital growth prospects in the future, further set to benefit from the rapid growth of e-commerce.

“So far in 2021, approximately $9.5billion has traded within the industrial and logistics sector (>$10 million) which represents a record level of investment and compares to $5.5billion for the entire 2020 calendar year. After a quiet 2020 where offshore investors represented 10% of investment volumes as a result of border closures, offshore investors in 2021 have represented 53% of investment volumes.”

Sean Thomson, Director, Industrial Capital Markets, at Colliers, said: “Strong occupier trends and favourable structural changes more broadly has led to a significant re-weighting of capital towards the industrial and logistics sector. New market entrants, both local and offshore, continue to add to the significant weight of capital chasing assets in the market, which we estimate to be around $40billion. This figure has grown substantially over the past six months as domestic groups receive capital from offshore funds, given the perceived low risk perception of the Australian industrial and logistics market.

“As a result of this level of investment, yields have compressed by approximately 70 basis points in H1 2021, and a large re-rating has occurred within the sector. For the first time on record, industrial and logistics yields are now lower than CBD office yields which highlights the shift in pricing for the sector.”

The shift in investment allocations towards the sector have been supported by strong tenant covenants and future growth prospects with both rental and capital growth expected to remain elevated over the foreseeable future.

The outlook for further compression is favourable as the spread to the risk-free rate remains broadly in line with the long-term average. In addition, further yield compression in the sector would bring them more in line with key global markets such as Hong Kong, London, and the Inland Empire (USA) where prime yields are closer to 3.5%.

149 Airds Road, Minto is being offered for sale via International Expressions of Interest closing 12:00pm (AEST) Wednesday, 18th August 2021.

To request a copy of the Information Memorandum please contact one of the marketing agents via the contact details below.