Three adjacent industrial buildings opposite the Sydney Markets in Homebush West have sold in one line for $24.5 million via private treaty in a deal negotiated by Knight Frank agents Angus Klem and Wally Scales.

The facilities at 179-181 and 185 Parramatta Road and 29-31 Park Road in Homebush West were purchased by an owner-occupier who intends to redevelop the site, which totals 10,474sq m of land, for a new custom-built facility.

The existing buildings, which have a total area of 8,095sq m, are leased in one line to a wholesale distribution company until mid-2024. At lease expiry, the tenant will relocate to accommodation better suited to its needs.

Mr Klem said more than 120 enquiries were received during the marketing period for the property, with interest from owner-occupiers, industrial developers and private investors.

“This transaction is typical of the current trend we are seeing, whereby buyers are looking for core-plus investments – that is, brownfield sites with dated facilities that have value-adding or redevelopment potential,” he said.

“For sellers, usually unlisted ‘mid cap’ corporates, who are sitting in accommodation that is obsolete for their needs, it gives them the opportunity to convert the capital into cash and then move into more palatable accommodation.

“In this case, the tenant will look for a new premises after occupying the site for 20 years.

“With a short-term lease remaining on this property, the purchaser will benefit from having an income stream while they consider lodging a DA or gaining other regulatory approvals.”

Mr Scales said the property was a strategic infill location in Sydney’s inner west, situated midway between the Sydney CBD and the Parramatta CBD. 

“After scouring the market for several years, the purchaser was attracted to this property because the site area, three street frontages and surrounding transport network was particularly suitable for their purposes,” he said.

“Industrial property is still in short supply across Sydney, and this offering was an outstanding opportunity for a buyer to secure a very sizeable piece of land in a strategic location.”