In a joint venture between Dexus Industria REIT and parent company Dexus, 12 Church Street was purchased for approximately $44 million
Dexus continues its prolific investment strategy securing prime industrial land in Sydney’s southwest. Dexus Industria REIT and parent company Dexus, have entered into a 50-50 partnership to buy 12 Church Street, Moorebank, for approximately $44 million. The off-market deal was managed by Colliers’ agents Fab Dalfonso and Rino Gazerra.
There are development plans in place to build a multi-level storage facility across 15 to 20 units. The logistics hub is expected to be completed by mid-2024.
“The sale of 12 Church Street in Moorebank represents an off-market transaction of an unused facility that was burnt down in 2020,” Fab Dalfonso explains. “Our vendor saw an opportunity to take advantage of the bullish market, demand for available industrial land in Sydney is significant.”
As reported, Dexus Industria REIT view Moorebank as a significant last-mile logistics centre. There is currently a scarcity of quality logistics facilities in and around Sydney and growing online e-commerce activity is further pushing demand for logistics and warehouse spaces.
“Institutions are now considering smaller parcels under 4 hectares, due to land constraints leading to lack of supply and high demand,” Mr Dalfonso says. “With land rates under pressure in the South West Growth Corridor of Sydney, future concepts will most likely incorporate two-storey warehousing facilities to compensate for land values.”
Current warehouse demand is exceeding supply and has pushed South Western Sydney vacancy rates under 4.3%, this combined with land shortages across Sydney, is likely to see multistorey warehousing shape the next phase of industrial property. Luke Crawford, Director of Industrial Research for Colliers, recently launched a whitepaper ‘Multi-Storey Warehousing in Australia’.
“Multi-level warehouses have existed in the Asia Pacific region for decades, particularly in the more developed markets of Japan, South Korea, Singapore, and Hong Kong, where dense populations and limited land availability have made them a necessity. With land supply continuing to diminish in the Sydney basin, multistorey warehouses will be the new normal,” Mr Crawford says.
