A significant infill industrial landholding in the highly desirable South Sydney region is set to appeal to a large cross section of potential purchasers after coming to market.

Strategically located near Port Botany and Foreshore Road, this 16,326sqm property at 60-66 Perry Street and 1 Kelly Street, Matraville, which is occupied by highly functional building improvements of 9,838sqm of GLA is a highly attractive prospect for investors, industrial and strata developers as well as self-storage operators, given the site’s flexibility. 

The Colliers team of Trent Gallagher, Michael Crombie, Sean Thomson and Gavin Bishop have the listing in conjunction with Michael Laing of The Agency on behalf of Orcades Investments Pty Limited, the owner for over 50 years, with price expectations in excess of $40 million expected.  

“This flagship site is such a rare offering of scale within the South Sydney industrial precinct which is the most tightly held market in the country, and it offers so much upside through rental reversion and re-development,” Mr Gallagher said. 

“The market loves these red brick character buildings and the opportunity to provide an improved investment and/or treat the opportunity as a blank canvas to start again,” Mr Crombie added. 

The E4 General Industrial zoning offers multiple potential development outcomes, allowing for a potential GFA of 16,326sqm. On top of this, the property has significant rental reversion upside as well as a staggered WALE of 3.26 years by income. 

“Assets within infill industrial markets, such as Matraville, recorded a significant increase in 2023 (>$10m), representing 63% of the total sales volume (compared to 51% in 2022), as purchaser preference for this asset profile dominated over outer ring industrial assets.

We expect this trend to continue, as occupier demand and low vacancy levels create opportunities related to occupancy. Assets with a short Weighted Average Lease Expiry (WALE) and redevelopment prospects enjoy an opportunity to take advantage of proven rental growth,” Mr Laing said. 

Rents in South Sydney are forecast to be bullish throughout 2024, expected to be approximately 11.5 per cent due to sound investment fundamentals and strong underwriting prospects. 

60-66 Perry Street and 1 Kelly Street, Matraville is for sale via an Expression’s of Interest campaign closing on the 12th of June.