An industrial property located on an airstrip on the New South Wales’ South Coast, in the City of Shoalhaven, has several factors that will attract investors as it hits the market this week.

The facility at 9-11 Wugan Street in Yerriyong, is uniquely positioned with tarmac access to HMAS Albatross, which is the air station for the Royal Australian Navy's aviation branch, the Fleet Air Arm.

The 2.2 hectare site has 3,995sq m of office and warehouse building area across two buildings, and 76 car bays.

It is fully leased to Air Affairs, a fully owned subsidiary of QinetiQ with a net income of $947,000 and a WALE of 6.5 years (as at December 23).

The property is being sold by Australian investment manager Sumner Capital via a Private Treaty campaign run by Angus Klem, Ben Mostyn and Ben Churven of Knight Frank.

Price expectations are between $13 million and $15 million.

Mr Klem said the asset was very unique in that it fronted the HMAS Albatross and was a freehold offering.

“Normally these properties are leasehold, so the fact that this is freehold will be an attractive proposition to investors,” he said.

“The tenant is also very secure, with a market capitalisation of several billion dollars and a lease in place until 2029 with annual rent reviews of CPI plus one per cent, providing solid cash flow for a purchaser.

“The location is ideal for this tenant, with the property providing direct access to the airstrip.”

Mr Mostyn said the location of the property was backed by significant public and private infrastructure investment which has resulted in a vibrant high tech industrial and commercial precinct.

“The asset stands within a strategic innovation hub within close proximity to one of the world’s most desirable cities - Sydney,” he said.

“The astute investor will be offered significant holding in an area that is already deeply intertwined in an extraordinarily strategic location.

“More than $15 billion is to be invested by State and Federal Governments in the Shoalhaven region over the next 20 years, with the population expected to grow by 140,000 people.

“There is also rapidly growing government funding in the defence sector, exceeding $50 billion for the first time over 2023 to 2024.”

Infrastructure projects in Shoalhaven include the $1 billion-plus Nowra Bypass, which is in the planning stages, as well as the recently completed $630 million Albion Park Bypass.

The $450 million Berry to Bomaderry upgrade and the $310 million Nowra Bridge project are currently under construction.

The Private Treaty campaign for the Yerriyong property will close at 4pm (AEST) on August 24.