Warehouse in southwest Sydney sells for $20m as investors hunt returns
A warehouse in Ingleburn sold for $20m.
A private investor has outbid a dozen offers for an industrial warehouse in southwest Sydney, securing the site for about $20m.
It’s understood the local market offers among the highest rental returns in the country, with rents growing at 51.7 per cent over the 12 months to September – double the national average.
An announcement from selling agency Colliers revealed that the 12,500 sqm site, which had scope for redevelopment, was “well-poised” to benefit from the rising rents in the area.
Rent rises in the southwest were among the highest in the country.
Colliers noted that current rents in the southwest average $239 per sqm, which is about 88 per cent higher than in 2021.
The industrial warehouse on Williamson Rd in Ingleburn – about 8km from the M5/M7 interchange – included three buildings with a total floorspace of 5400 sqm. Frontage for the site was 90m.
The sale was negotiated by Colliers agent Adrian Balderston and manager John Tsoutsa, in conjunction with JLL’s Bella Cass and Stephen Chronopoulos, on behalf of Magdilla Pty Ltd.
The site is over 12,000 sqm.
“This deal demonstrates the continued strength of the industrial market amid interest rate fluctuations, especially (in) the southwest Sydney market, where there is an undersupply of stock for both owner occupiers and investors,” Mr Balderston said.
“Existing facilities suitable for both warehousing and manufacturing, with high power and yard are always in demand in Sydney, and this asset provides a power supply of 700 amps, six overhead gantry cranes and high internal clearance.” Mr Tsoutsa added.
The prized Ingleburn industrial asset was sold on 1 December 2023, following a competitive Expressions of Interest campaign, which ran from early October until early November.
