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Developer pounces on prime South West Sydney industrial site

21 Marigold Street Revesby

A highly competitive campaign led to over 10 first round bids for this coveted Revesby property.

A prime 10,416sqm development site in South West Sydney has sold to a private developer as demand for scarce industrial land puts upward pressure on prices.

The property at 21 Marigold Street in Revesby was sold by Trent Gallagher and Angus Urquhart of Colliers on behalf of LBP Developments Pty Ltd for $16.3 million.

In what was a highly competitive on-market expressions of interest campaign, there were 11 round one bids which resulted in a tender process for round two, where multiple signed contracts were received and the vendor choosing the best offer.

“The deal resets land values within the region and shows multi-level warehousing in the south west is on the horizon,” Mr Gallagher said. “This was a fantastic opportunity to secure one of the last remaining scalable industrial development sites within Revesby where land supply is greatly diminishing, providing strong prospects for capital and rental growth.”

The property is currently occupied by Mirotone Pty Ltd with the lease expiring in April 2022. The price achieved equates to $1,555 per sqm of land with a current passing yield of 2.45 per cent. As the site was purchased for development purposes, the current rent was of less concern.

“The land rate achieved surpasses all expectations in the inner south west market and truly reflects how difficult it is to find prime industrial sites in the wider Sydney region,” Mr Urquhart added.

With a low building coverage of just 38 per cent and a prominent 75m frontage to Marigold Street, the listing was an attractive prospect.

The record-breaking $802 million sale of a 13.8-hectare Mascot site negotiated through Colliers is expected to be the catalyst for a price boom in surrounding regions, spurred on largely by increased demand for multi-level warehousing and logistic facilities on the back of the shift to online shopping experienced throughout the pandemic.

In the 12 months to September 2021, the land values from 1 to 5 hectares in South West Sydney have risen 24.1 per cent, according to Director of Industrial Research for Colliers Luke Crawford. This was the highest annual growth rate since March 2019 and well above the 10-year average growth rate of 13.7 per cent per annum.

The research, from the Industrial Development Update for Western Sydney, also showed that the catalysts behind the recent growth in land values has been the diminishing availability of industrial zoned land and significant levels of yield compression.


Related Experts

Trent Gallagher

National Director, Property Sales & Leasing | Industrial

Sydney South

Trent has been in the real estate industry for over 14 years and in that time, he has thrived in this competitive industry and established himself as one of the most highly esteemed agents within the industry. He has honed his skills in varied markets whilst specialising in commercial and industrial properties from which he has gained immense property knowledge. Since coming to Colliers International, he has excelled across the property spectrum and has become known for his hard work becoming the leading agent in the Sutherland Shire, St George, South Sydney, South West and the Inner West markets.

Trent has been involved in some of Sydney’s most notable sale transactions which includes the old Toyota HQ at 13 Endeavour Road, Caringbah and the Qantas investment and land portfolio at Mascot. Trent has also been involved in some of Sydney’s most notable industrial and commercial leases along with notable pre-lease transactions which includes the new 18,000m Harvey Norman warehouse at Casula.

Trent continues to endeavour to be at the forefront of the industry with innovative methods in canvassing, marketing and strategic sales. He strives to actualize the goals of his vendors and work hand in hand with prospective purchasers to ensure all parties achieve the best result efficiently.

Trent takes personal pride in his responsibilities to his clients and delivering service excellence across a variety of situations with his experience and knowledge to recognise and assess any industrial, commercial, retail or residential development site requirement. His assembly of long term clients is a testament to his commitment to his work and ensuring he delivers the best result every time.

 

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Angus Urquhart

Manager, Property Sales & Leasing | Industrial

Sydney South

Previous tertiary education at The Scots College, Sydney and a Bachelor of Property Economics at the University of Technology Sydney has given me the experience in a range of working environments and has shaped me into a personable and determined team member and leader.

I have been in the real estate industry for over 5 years with experience as an Analyst and Exectuive providing valuable insights into cash flow modelling, development feasibilities and asset valuations.

As Manager within the Colliers Industrial South Sydney team, I thrive on competition and establishing relationships with long term clients to provide them with unparalleled service. Since coming to Colliers I have excelled across the property spectrum and endeavour to be at the forefront of the our team with innovative methods in canvassing, marketing and strategic sales. 

I strives to actualize the goals of my vendors and work hand in hand with prospective purchasers to ensure all parties achieve the best result efficiently.

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