Charter Hall’s largest industrial fund, the $2 billion Prime Industrial Fund (CPIF), has acquired a strategic 56,600sqm industrial parcel of land in Huntingwood for $29.715 million from Beirsdorf. The site is in one of the most sought after industrial locations in Sydney, due to being a highly land constrained location and is set to experience strong rental and capital growth on the back of the substantial infrastructure investments the Government has committed within this region.
Located at 36 Huntingwood Drive, Huntingwood, the property was sold through Gavin Bishop and David Hall of Colliers International and is zoned IN2 Light Industrial with B-Double truck access. The site is of regular shape and appropriately zoned to suit a variety of users and development schemes.
Charter Hall is Australia’s second largest pure play industrial and logistics property owner and manager with a $4.7 billion portfolio in key Australian markets. The strategic acquisition balances out the Group’s existing industrial and logistics land holdings within Sydney’s inner west and the southwest and will see CPIF develop the site, known as Huntingwood Logistics Park, with an on completion value of approximately $65 million.
Strong demand from existing and new Charter Hall tenant customers in this land constrained area has seen CPIF move quickly to lodge a development application for a prime A-grade warehouse/distribution facility of approximately 32,715 square metres.
The property benefits from its expansive frontage to the great Western Highway offering significant exposure on one of Western Sydney’s significant arterial roads. The site also benefits from its close proximity to both the M4 Motorway (2.5km) and the M7 Motorway (3km).
The junction of the M4 and M7 Motorways is positioned approximately 3.5 kilometres to the west of the site providing exceptional access to the Sydney Orbital Network.
According to Gavin Bishop, National Director, Industrial at Colliers International, Huntingwood is considered as one of Sydney’s premium industrial precincts by many of the largest corporate industrial occupiers.
“Vacant industrial land within this precinct is rarely traded and very limited in supply. Land purchase rates have increased over the past few years within this precinct largely due to increased tenant demand.
“Occupiers throughout the Huntingwood precinct are of an international corporate calibre and see this location as the premium precinct for their metropolitan and National warehousing and production operations. They are also showing preferences for A-Grade purpose built facilities as they provide the ability to be specialised and build in further efficiencies,” he said.
According to David Hall, Director of Industrial at Colliers International, the majority of available appropriately zoned land in Western Sydney is located west of the M7 Motorway and is currently mostly un-serviced.
“Sites, such as Huntingwood Logistics Park, provide further certainty around the timeframes around development and delivery of facilities. Driving further demand for land, pre-Lease and design and construct leasing transactions make up over 50% of all leasing transactions above 5,000sqm within the Western Sydney Industrial markets.
“Furthermore, Huntingwood is extremely well serviced by current major road infrastructure such as the M7 and M4 Motorways providing unrivalled access to the Sydney orbital network. This precinct will further benefit from future infrastructure such as the WestConnex project and the second Sydney Airport at Badgerys’s Creek,” he continued.
Huntingwood is situated approximately 35km from the Sydney CBD, 15 kilometres from the Parramatta CBD and approximately 47 kilometres from Port Botany.