Australian property market wrap: 18 September 2023

• Lendlease’s APPF has acquired a property for $47M.
• A fully leased Queensland property has been sold for $11M.
• A new Geelong development has been put up for lease.

The week kicks off with a strong industrial flavour as one industrial property is acquired, and another is developed. Also in the mix is a fully tenanted property in the south of Brisbane, sold for just under $11 million.

SOLD

Lendlease industrial fund acquires Smithfield property

Contracts have been exchanged on the purchase of 15 Britton Street in Smithfield, New South Wales (NSW) for Lendlease’s Australian Prime Property Fund (APPF).

Acquired for circa $47.05 million, the property is a strategically positioned asset located within a core logistics area in Sydney’s Central West. The property has a site area of 3.2 hectares and currently comprises a 12,979 square metre warehouse and office secured by a short-term lease to a prominent snack food manufacturer.

The asset is part of the fund’s strategy to provide well located warehousing and logistics solutions to satisfy the growing demand for improved fulfilment and last mile distribution facilities.

The fund plans to unlock further value as the site sits adjacent to its existing holding at 28-54 Percival Road by redeveloping both sites into a best-in-class multi-level logistics facility.

The development plans include multiple access ramps, high clearance warehousing, on-grade and recessed docks for all levels and B-Double approved access and manoeuvrability. It will also incorporate technology to advance smart buildings for the industrial sector, target sustainability outcomes with solar, energy and water efficient equipment and support employee health and wellbeing with respite areas and amenity including on-site retail, fitness and childcare.

The acquisition brings APPF Industrial’s portfolio of assets to 45.

Gavin Bishop and Sean Thomson from Colliers and Chris O’Brien and Jason Edge from CBRE managed the sale process.

Calamvale property sold for $10.9M

Synergy Property Partners has sold Central Park Calamvale to a local investor for $10.9 million, representing a yield of 5.63%.

Located 20 kilometres south of the Brisbane CBD, the 2,736 sqm centre is fully leased to a mix of medical, allied health, beauty, office, and food and beverage tenants.

CBRE’s Michael Hedger, Harrison Coburn, and Will Carmen brokered the deal on behalf of Synergy Property Partners via an expression of interest campaign which generated 110 enquiries and eight formal offers.

The same CBRE team sold the asset to the vendor in 2016 who has realised a 55% uplift.

“We are continuing to see new entrants enter the market with five of the eight formal bids not seen previously. This demonstrates the depth of the high-net-worth private sector, who are continuing to be active in the retail and medical sector,” said Hedger.

“Mixed-use metropolitan assets with strong fundamentals such as Central Park continue to achieve strong results as the price point is very palatable for private investors who may not be subject to the increasing cost of debt,” added Carmen.

FOR LEASE

New industrial facility in Geelong

Bisinella Developments has announced the development of a new industrial factory in Geelong.

The factory is designed to provide a large industrial space for a local manufacturing or logistics business, spanning a total of more than 3,600 sqm.

The site includes an air-conditioned open plan office connected via Opticomm High Speed Fibre and includes a separate amenities block for factory workers.

The warehouse is fully fenced with three secure electric gates, displays modern landscaping, and will be fully operational when the successful leaser moves in.

The development is being built by Plan Group Geelong.

Colliers sales and leasing specialist, Ben Young, said this is an exciting opportunity for a national or international company to occupy a brand-new warehouse with easy access to Princes Highway.

“The Geelong industrial market has not seen a warehouse of this size built for a number of years that is offered for lease,” said Young.

“The facility caters comprehensively to its tenants’ needs, spanning 3,637 sqm and encompasses essential features such as a spacious canopy, generously sized offices, and top-notch amenities for staff convenience.

“The warehouse itself boasts an impressive internal clearance of approximately 9.8 metres, providing ample vertical space for various storage needs. Additionally, the facility offers the convenience of drive-through access and can include a substantial 3,000 sqm of prepared crushed rock-hard stand area, depending on tenant needs.”