South Sydney industrial landholding sold by Colliers

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Oct 21, 2024

South Sydney industrial landholding sold by Colliers

A core plus industrial investment with significant development potential located at 60-66 Perry Street & 1 Kelly Street, Matraville sold by Colliers’ Trent Gallagher, Michael Crombie, Gavin Bishop and Sean Thomson and The Agency’s Michael Laing.

Colliers

60-66 Perry Street & 1 Kelly Street, Matraville sold by Colliers
Colliers

60-66 Perry Street & 1 Kelly Street, Matraville sold by Colliers

A core plus industrial investment with significant development potential within one of Australia’s most tightly held industrial markets has sold.

60-66 Perry Street & 1 Kelly Street, Matraville comprises a scalable landholding and benefits from its unparalleled connectivity to crucial Sydney transport infrastructure, including Port Botany, Sydney Kingsford Smith Airport, and key arterial motorways, such as the M5 & M8 Motorways and Sydney Gateway.

This prime land holding benefits from an expansive 52 metre frontage to Perry Street and a 146-metre frontage to Kelly Street, presenting the opportunity for multiple re-development and value-add initiatives with short-term holding income across four separate titles.

Existing improvements incorporate medium clearance, clear-span warehousing across seven units, benefiting from ample hardstand space and on-site car parking. The facility is complemented by a two-level office component to the front of the facility, featuring well-appointed kitchen and bathroom amenity with air conditioning throughout.

1 Kelly Street sits on its own title directly across Kelly Street and is currently used for overflow car and truck storage. 60-66 Perry Streetprovides a net passing income of $1,149,081 ($117/sqm) per annum and an assessed net market income of $2,618,055 ($266/sqm) per annum.

Given this, the property stands to benefit from strong rental reversion potential and multiple value-add redevelopment options with a staggered WALE (by income) of 3.0 years.

The property was sold via an on-market Expressions of Interest (EOI) campaign which received significant interest from a large cross-section of potential purchasers, including both domestic and offshore institutional groups, was sold to by Colliers’ Trent Gallagher, Michael Crombie, Gavin Bishop and Sean Thomson and The Agency’s Michael Laing.

“It is exciting to find such creative older style buildings knowing that developers have the ability to bring a new lease of life for this precinct which is likely to have a flow on effect to the greater Matraville/Port Botany area,” Mr Crombie said.

“This offering presented an extremely rare opportunity to acquire a flagship site, strategically positioned within the most tightly held industrial market in Sydney. Given the short WALE and significant value enhancement potential through refurbishment of the existing buildings, the incoming purchaser stands to benefit from significant rental reversion in the short term, as well as multiple development options in the future,” Mr Gallagher said.

“Low vacancy rates in land-constrained and infill markets like Matraville, coupled with its proximity to critical infrastructure such as Port Botany and Sydney Airport, have driven resilient rental growth. This will continue to position Matraville as a key investment precinct for both domestic and offshore sophisticated investors,” Mr Thomson said.

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