Dexus to build e-commerce hub at South Granville
E-commerce operators are expected to figure among the future tenants at a new industrial precinct to be built at South Granville, after Dexus bought a 10ha infill site for more than $61 million.
Dexus paid $61.5 million for the tract of land at 54-68 Ferndell St, in the largest freehold land sale in Sydney’s west so far this year.
Savills’ Darren Curry, who brokered the deal on behalf of private vendor Sasanqua Pty Ltd, along with colleague Ray Trimboli, says the site will now be developed for industrial uses, and in particular “last mile” supply chain operations.
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“The site will give e-commerce companies a competitive edge for “last mile” and “just in time” delivery capability due to its prime location,” Curry says.
There were seven offers to purchase for the prime site, which will accommodate up to 56,000sqm of gross floor area and provides easy access to the rest of the region.
“The site is well positioned to get freight and product to the Sydney metro region, with less congestion compared to the many outlying industrial areas,” Curry says.
The site provides easy access to Sydney’s western suburbs.
“Precincts such as Regents Park and Chullora hold a similar appeal for many occupiers.”
Curry says the western Sydney industrial development market is booming, with Savills selling more than $150 million worth of land in the last four months.
“These transactions have included Boral’s Greystanes sale to ISPT for $60 million, a Goodman sale to Direct Freight Express for $30million at Oakdale, and now the $61.5 million South Granville sale to Dexus,” he says.
“We expect the industrial land sales market to continue to perform highly in Sydney, as supply and demand forces are creating healthy competition among purchasers.
“Both owner-occupiers and developers are wishing to acquire zoned, serviced and well-positioned land within close proximity of major existing and under-construction infrastructure projects.”
