Sydney logistics properties run hot

In one play US private equity group Blackstone has snared a portfolio of four industrial properties in Sydney’s Smeaton Grange for about $50 million.

The sale, conducted by CBRE, included four industrial properties spanning a total warehouse area of about 29,500sqm. The A-grade properties at 157 Hartley Rd, 145 Hartley Rd, 23 Anzac Ave and 18 Anzac Ave were sold by private companies.

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Three of the four properties remain tenanted by the Sydney-based logistics company that sold them, while the Anzac Ave property is tenanted by ASX-listed ACM Parts.

CBRE’s Adam Tresidder, Moshe Greengarten and Jason Edge conducted the sale.

We are seeing an increased demand for both owner-occupiers and investors down the M5 corridor on the back of major infrastructure projects and the regentrification of once industrial precincts around South Sydney

“Given the scale and quality of these properties, we identified an opportunity for the vendor to maximise returns by bundling four of their assets into one portfolio,” Tresidder says.

He says Blackstone was ­attracted to the portfolio’s investment fundamentals. “Furthermore, the varying warehouse sizes also provided an ability to spread, which was another key attraction,” Tresidder says.

The agency is seeing strong rental growth in the sub-5000sqm market and Rourke says the deal is one of very few in Sydney’s tightly held outer-southwest market.

“We are seeing an increased demand for both owner-occupiers and investors down the M5 corridor on the back of major infrastructure projects and the regentrification of once industrial precincts around South Sydney,” Rourke says.

Meanwhile, a major property developer has swooped on an underdeveloped industrial property in Wetherill Park in Sydney’s west, in a $61 million deal brokered by JLL’s Michael Wall, who declined to comment.

This article originally appeared on www.theaustralian.com.au/property.