Bob Ell offloads Sydney industrial site in $50m deal

Leda Holdings has sold an estate in Mount Druitt to Gibb Group for $50m

Bob Ell’s Leda Holdings, one of the country’s largest private property development and investment companies, has sold its 4.58ha multi-tenanted estate in Mount Druitt to Gibb Group for $50m.

The sale of 91 Kurrajong Avenue, which the billionaire picked up for $15.5m in 2016, was managed by CBRE’s Elijah Shakir and Jason Edge.

Mr Shakir said Gibb Group, a national vertically integrated industrial real estate platform, planned to reposition the asset through major refurbishments and resetting existing rents.

“Leda’s divestment of the asset completes their value-add strategy of the fringe western Sydney site which has undergone significant refurbishment, redevelopment and repositioning since its original acquisition,” Mr Shakir said.

“The Mount Druitt acquisition for Gibb Group represents a purchase below replacement cost, with passing income. The location is also due to benefit from significant infrastructure upgrades.

“This sale highlights the ongoing focus that buyers have for Sydney logistics, with the majority of capital remaining focused on core-plus or value-add opportunities.”

Leda Holdings executive chairman Bob Ell.

Leda managing director Rob Ell said Leda acquired the property in late 2016, with the scope of repositioning it with upgrades and using the vacant land for a new freestanding 2500sq m warehouse with surplus hardstand leased to Earthworx.

“The area is very strong with great amenities; it’s close to a Westfield shopping centre and major infrastructure,” he said. “It’s a great long-term asset, and we are happy Gibb Group has acquired the property.”

Gibb Group chief executive Matthew Gibb said the off-market acquisition showed the developer’s targeted strategic origination approach.

“Whilst the acquisition price reflects underlying land value, we see significant opportunity to create value through leveraging our active and nimble management approach to refurbish and reposition the existing functional improvements and the potential for further development over the longer term,” Mr Gibb said.

“We will look to build on this acquisition, by actively growing our exposure to similar well-located industrial and logistics assets in key metropolitan markets.”

The estate was fully leased to com Earthworx, Paramedical and Sunnyfield at the time of settlement.

The property has a passing net income of $2.5m per year.