Alexandria’s largest sale so far in 2024 has been secured for $76 million, setting a new benchmark for the industrial core investment market. 

Underpinned by blue-chip tenant covenants, this prime industrial freehold property at 118-124 Bourke Road incorporates high quality and versatile building improvements, strategically positioned with exposure to Alexandria’s major thoroughfare.

The Colliers team of Michael Crombie, Trent Gallagher, Gavin Bishop, Sean Thomson and Bastian VB sold the property, in conjunction with the CBRE team of Jason Edge, Nathan Egan and Shaun Timbrell. 

“The pricing achieved for this Alexandria investment is testament that well-located, good quality buildings always achieve superior pricing. South Sydney has seen limited investment product come to market in 2024, as the majority of stock sold has been for a higher and better use. The interest from the REITS was extremely strong,” Mr Crombie said. 

“The South Sydney market continues to outperform with significant interest generated from a large cross section of the investment market. The highly functional improvements leased to Seven West Media and Telsa provided a medium-term WALE of 4.2 years. With interest rates forecasted to fall in early 2025, we expect to see yields to compress due to increased investor participation,” Mr Bishop added. 

“The Bourke Rd sale further highlights that the South Sydney industrial precinct remains in high demand from both investors and global capital. The bidding was extremely competitive due to the high-quality improvements and strong underlying land value providing groups various short- and longer-term optionality,” Mr Edge said. 

Situated on a substantial 12,530sqm freehold land parcel, the property features high-quality and versatile building improvements totalling 9,909sqm. Its prime location offers unparalleled access to key Sydney transport infrastructure, including Sydney Kingsford Smith Airport, Port Botany, and the WestConnex Motorway.

With a WALE (by income) of 4.2 years, the property boasts a strong income profile in the medium term with significant redevelopment potential for future value enhancement.

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