Amidst the ever-evolving dynamics of Sydney's real estate market, a recent off-market transaction has spotlighted the allure of industrial assets in the city's west.
Cushman & Wakefield’s Carl Pearce, Nick Brooks and Alistar Siokos of Cushman & Wakefield recently sold 26 Redfern Street, Wetherill Park, for $18.1 million to Centuria.
This acquisition showcases the enduring appeal of strategically positioned industrial facilities, particularly within core precincts such as Wetherill Park.
Situated on 9,905sqm* of land, this property encompasses a range of desirable features, including a high clearance warehouse, office accommodation, substantial power capacity, and a suite of practical amenities such as roller doors, a gantry crane, and a wash bay. The two concrete tilt panel buildings totalling 4,528.60sqm* stand as a testament to the property's robust infrastructure and investment potential.
Mr Pearce said what sets Wetherill Park apart in the eyes of investors is its evolution into a prime industrial hub, fueled by the confluence of strategic location and burgeoning market fundamentals.
“Institutional interest in the precinct has surged in recent years, driven by its infill nature and the upward trajectory of rental growth. Notably, approximately 40% of Wetherill Park is now under institutional ownership, underscoring its appeal as a sought-after investment destination” he said.
The strategic positioning of Wetherill Park amplifies its attractiveness, with approximately 3.9 million residents reachable within a 45-minute radius, encompassing a staggering 75% of Sydney's population. This unparalleled accessibility, coupled with a vacancy rate of just 0.9% in the Sydney West submarket, underscores the robust demand-supply dynamics driving the region's industrial sector.
Prime rents have surged by an impressive 17.8% in the 12 months leading up to March 2024, marking a remarkable uptick of nearly 80% since mid-2021. Such exponential growth underscores the potential for value creation within the industrial landscape, further buoyed by the area's connectivity to key arterial roads such as the M7 Motorway, M4 Motorway, Cumberland Highway, and The Horsley Drive.
Mr Brooks said “The purchaser's interest in the site was underpinned by the combination of short-term leases and an under-rented facility, presenting a significant rental reversion opportunity. This asset not only offers flexibility to occupiers but also holds appeal in a highly sought-after industrial market.”
“Moreover, the property's well-maintained condition and minimal capital expenditure requirements underscore its potential as a lucrative asset within Sydney's thriving industrial landscape” he said.
Mr Pearce believes as core markets, such as Wetherill Park, continue to cement their status as a nucleus of industrial activity, savvy investors are poised to capitalise on the region’s robust growth trajectory.
“With an array of institutional heavyweights spearheading significant developments in the area, the allure of Wetherill Park as a premier investment destination is set to endure, offering a compelling proposition for investors seeking to unlock value in Australia’s dynamic real estate market.”
Located near key arterial roads such as the M7 Motorway, M4 Motorway, Cumberland Highway, and The Horsley Drive, this location offers exceptional connectivity and accessibility to the Greater Sydney region.
It is also surrounded by some of the country's largest institutions, including Centuria, Charter Hall, Mapletree, ESR Arrow Capital, Stockland, Frasers, GPT, Fife Capital, and Blackstone, contributing to the area's significant institutional developments.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit www.cushmanwakefield.com.
