Developer see opportunity in local market for industrial strata development.
Billionaire developer Bob Ell has snapped up an industrial site in Banksmeadow from a private family for $16 million with plans of a strata industrial re-development in the South Sydney suburb.
Located at 13-19 Baker Street, Banksmeadow, the 9,385sqm site comprises a corner level parcel of land with two street frontages of 112 metres along Baker Street and 88 metres along Moore Street, dual street access and zoned for industrial uses.
The off market transaction for Mr Ell’s Leda Holdings company was negotiated by William Gathercole and Trent Gallagher of Colliers International, who said the existing industrial buildings on site equate to 3,877sqm generating a net rental income in excess of $565,000 + GST.
The site is just metres from Eastgardens Westfield and approximately 5 kilometres to the north of Port Botany. The site is also conveniently located near public transport, Sydney CBD & Sydney International & Domestic Airports.
Banksmeadow is a popular market in Sydney currently for industrial and commercial use. This is driven by its close proximity to Sydney CBD, Sydney Airport, M5 Motorway making it a desirable place for industrial occupiers wanting to maintain their businesses in the local area.
According to William Gathercole, Director, Property Sales & Leasing at Colliers International, “This is one of the best sites to come onto the market in 2016, it has great scale and is ideal for redevelopment into industrial strata units. There is a huge appetite for units close to Port Botany and the eastern Suburbs. The latest industrial strata development to hit the market was McCauley Business Park.
“Developed by Ramsay Group, the 30 unit estate sold out off the plan, which is unusual for this type of product. We are seeing units being re-sold 35% above the initial purchase price 12 months ago. The industrial strata market has been dormant for many years however over the last 12 months we are seeing more investors seeking this style of product as an alternative to residential units.”
Mr Gathercole went on to say that Banksmeadow provides a choice for the discerning investor or occupier, with so many new trendy eateries within the precinct. With Meriton’s $3 billion Pagewood Green development close by, there will be a strong appetite for storage and industrial units to cater for the growing population.
According to Trent Gallagher, Director, Property Sales & Leasing at Colliers International, “This was a strategic purchase from Leda Holdings as they saw a huge hole in the local market for future industrial strata development due to the lack of industrial stock that remains in the South Sydney market. This is due to the rezoning of the majority of the industrial property to high density and mixed use development.
“Leda Holdings have recently completed a 40 lot industrial land sub-division some 15km from this property at Taren Point where over a 3-4 year period they saw land values alone increase over 30%.
“Within this sub-division, they have also developed industrial strata units where we have seen the take up rates from purchasers as high as ever selling out of 22 units in a 12 week period” he said.
Leda Holdings represented by Colliers International, are about to launch a brand new industrial development on the corner of Meta Street and Cawarra Road in Caringbah featuring six showroom/warehouse units, eight factory units and around 100 storage/lock up units.