$71 MILLION SALE OF 'SYDNEY SIX' GIVES RISE TO WESTERN SYDNEY INVESTMENT HOTSPOT
Written on the 24 May 2017 by Paris Faint
SIX INDUSTRIAL assets in Sydney's West, dubbed the 'Sydney Six', have sold for a collective $71 million, confirming the high demand for investment stock in the city's tightly held industrial market.
The Sydney Six consists of four assets in Wetherill Park, one in Smithfield and another in Eastern Creek, boasting a combined net leasable area of 45,850sqm.
The sales campaign was orchestrated by CBRE and Colliers on behalf of Simonson Properties.
"With a total of 19 offers received, it is evident that there remains incredibly strong demand for Sydney assets from a broad range of purchasers a trend that is further underlined by the limited supply of investment grade assets in the market at present," says CBRE's James Santi.
All six sites have been quickly leased at a weighted average lease expiry of 1.95 years, highlighting the strong occupier market and rental growth prospects for the area.
Elijah Shakir of CBRE adds that buyers in the current market are actively seeking risks of this kind.
"The vendor was able to take advantage of the abundance of capital and record low yields, to achieve a strong result for this portfolio," says Shakir.
"The purchaser was attracted to the portfolio's multiple exit strategies and concentration in the strong performing Wetherill Park market where we continue to see rental growth, falling incentives and short vacancy periods."
The largest of the sites at Wetherill Park has been leased by Yusen Logistics, a further two have been leased by Vivin Imports and the remaining assets have been leased by Amgrow, Action Aluminium NSW and Brighton-Best International.
Never miss a story: Sign up to Business News Australia's free news updates
Follow us on Twitter, Facebook, LinkedIn and Instagram
Author: Paris Faint