A prime industrial investment located in the New South Wales’ South Coast growth corridor is expected to generate strong interest as it hits the market.

The property at 132 West Dapto Road in Wollongong’s Kembla Grange consists of a fully leased warehouse/hardstand investment on a large 12.774 hectare site.

The buildings on the site total circa 15,000 sq m and are divided into two distinct and separate tenancies occupied by finished vehicle logistics operator Autocare Services and Soilco, a horticulturally-focused business designing products for the regeneration of soil.

The property is being taken to the market via an Expressions of Interest campaign run by Knight Frank agents Ben Mostyn, Ben Churven and Angus Klem on behalf of the vendor, 132 West Dapto Group Pty Ltd.

Price expectations are $43,000,000.

The asset has a WALE of 19 years and a net passing income of circa $1,948,386 per annum.

Mr Mostyn said the asset had many drawcards for investors, including its location within a strategic industrial hub in close proximity to one of the world’s most desirable cities, Sydney.

The property is 7 kilometres from Port Kembla, 85 kilometres from Sydney Airport and 220 kilometres from Canberra.    

“The property is in a tightly held industrial precinct along West Dapto Road, with the position boasting great exposure to passing traffic and presence in the precinct,” he said.

“It also has efficient access to the Princes Highway and M1 Motorway, a key thoroughfare of the Illawarra and South Coast region, providing access to Port Kemba, Sydney and Canberra.”

Port Kembla is an asset of national significance, critical to the future economic growth and development of New South Wales, and servicing growing demand for population driven trades such as vehicles and construction materials.

Meanwhile, the Illawarra region is entering a period of unprecedented growth, with $33 billion in construction and infrastructure development planned for completion by 2040. This includes projects to reduce sovereign risk around steel making, developing sustainable supplies of renewable energy, delivering housing and services for 65,000 new residents and improving the connectivity of the region by road, rail and digitally.  

The location of the property is also backed by significant investment resulting from the West Dapto Urban Release Area. It is estimated that by 2050, the Illawarra-Shoalhaven region will have a population of about half a million people, and that much of this population will live in the Wollongong Local Government Area.   

“An economy transformed, the Illawarra region combines proximity to Sydney with an educated workforce and an innovation ecosystem,” said Mr Mostyn. “The region is a natural fit for businesses looking to grow and expand.”

Mr Klem said the Kembla Grange property would have specific appeal to those investors who seek long-term stabilised sustained growth, with development and rental reversion upside over time.

“The size of the offering is extremely rare within the Illawarra,” he said.

“Investors have the opportunity to purchase a significant landholding with heavy industrial zoning, permitting a wide range of uses and providing a high level of flexibility.”

The Expressions of Interest campaign for the property closes at 3pm (AEDT) on Friday, December 8.