With a long WALE of 13.5 years, leased to secure tenants Real Dairy Australia and Tomkin, the state-of-the-art logistics property sets a benchmark for cold store assets in Australia. Part of the property is currently under construction for Real Dairy Australia and will reach practical completion in February 2021.
Gavin Bishop and Sean Thomson of Colliers International sold the 19,246 sqm facility at 37-39 Wentworth Street, Greenacre, Western Sydney. The property is located within Greenacre, a core infill logistics location with good access to Roberts Road, M4 and M5 Motorways.
Gavin Bishop, Head of Industrial Capital Markets at Colliers International said, “This sale emphasises the ‘flight to quality’ thematic that we are witnessing throughout the COVID-19 pandemic, along with the defensiveness and resilience of the Australian industrial capital markets.”
“Given the current environment, the focus from all investors is high quality, well located, income-producing assets with strong covenants; reflected within this sale.”
Sean Thomson, Associate Director, Industrial Capital Markets Australia at Colliers International said, “We have seen an almost 50% reduction in transactions across the first half of 2020 in comparison to the same time last year. Given approximately 63% of the product to trade this year representing A grade stock, we have seen genuine value preservation across the Australian industrial market with A grade stock transacting at the same level as pre the COVID-19 pandemic.”
Last year we saw corporates make up almost 24% by volume of the of the industrial vendor type, or approximately $1.4 billion of the $5.7 billion.
According to Colliers International Research, the cold storage logistics market has evolved rapidly over the past decade, transforming from one of traditional storage to a sophisticated and technology focussed operation.
Cold storage warehouses now provide a range of services including order picking, automated warehousing, inventory control and a wider range of temperatures in order to meet increasing client requirements.
The Australian cold storage sector is currently valued at $5 billion and is dominated by several specialised operators while a number of transport companies have been established to cater for refrigerated transport, and as a result, this has led to a number of users either building or refurbishing and leasing existing cold storage facilities.