Colliers is introducing an industrial property opportunity located in the thriving Mascot area within the Bayside Council. The property is set to attract significant interest with its impressive features, strategic location and development potential. Colliers’ experts Michael Crombie and Trent Gallagher are expecting the industrial asset to sell for over $16 million.

Mascot is a quickly evolving mixed-use precinct already welcoming heavy-weight giants such as LOGOS, Qantas, Charter Hall or Goodman which have monopolised numerous of ideal sites. Indeed, the area sustains a strong occupier demand and historically low vacancy levels of 2.5% within the South Sydney industrial sector.

Colliers’ Director In Charge, Michael Crombie, commented; “There is some major new and exciting development happening on a very large scale within the Southern Sydney suburb of Mascot that is in planning and underway. With the majority of these projects being of institutional nature and larger scale, we see this prime and boutique development offering of around 6,500 sqm to be of strong interest with its O’Riordan Street frontage, proximity to rail and the airport.”

Located at 176-180 O’Riordan Street, Mascot, the property represents a value-added investment with strong development potential approved by Bayside Council. The asset encompasses a secure short-term lease by global Airline Cleaning Services, Dnata, delivering an assessed net market income of $644,570 per annum which indicates a significant rental uplift from current levels.

The property is bound to a strategic rapid WALE by income of 1.25 years providing significant rental reversion scope in the short-term. Dnata is a strong tenant, as the company services over 9.9 million passengers over 107,000 flights annually in Australia.

Colliers National Director, Trent Gallagher, added; “This unique opportunity ticks a lot of boxes as it offers a generous FSR of 3:1, which you can generally push for higher S.T.C.A along with a height limit of 44 metres allowing for a total GFA of 6,655m. The site also has substantial existing rental holding income that a purchaser can benefit from whilst planning a future development across the site.”

The property holds diverse appeal, attracting a wide range of potential purchasers, including core plus and value-add investors, industrial and office developers, strata developers, and self-storage operators. Its flexible E3 Productivity Support zoning allows for multiple potential development outcomes, further enhancing its attractiveness.

The Expression of Interest (EOI) campaign is set to conclude on the 4th of June 2024 at 3:00pm.