Nuveen buys major Sydney industrial investment
EXCLUSIVE
Nuveen – which until 2021 owned a third of Myer’s Bourke Street Mall, Melbourne, building – has bought a major industrial investment in Sydney’s south west Prestons.
It is the second recent industrial play in the city for the a wholly owned subsidiary of the Teachers Insurance and Annuity Association of America.
Last May, it provided a $205 million senior loan facility to Hale, Oxford Properties and Warburg Pincus, to deliver a multi-level distribution centre at Rosehill.
The Prestons property, 63 Jedda Road, is a fully leased investment, completed in 2024.
Assuming it traded on a five per cent yield, Nuveen would be paying $100m.
Blackstone Real Estate Advisors controlled 151 Property was the developer and seller.
The property was offered as part of a portfolio last September.
Cushman & Wakefield’s Tony Iuliano, Adrian Rowse and Chris Jones were the agents.
The deal comes two months since we reported Centennial bought an industrial investment in the suburb, outlaying $29.75m.
63 Jedda Road
On 4.25 hectares, 63 Jedda Rd contains a 22,492 square metre warehouse configured as two tenancies.
Chemcorp International is the anchor (continues below).
The annual net rent is $5m.
The weighted average lease expiry by income is about 9.5 years.
Revenue is expected to rise some 25pc in 2030 when both rental agreements are reviewed to the market rate (ie, there are no caps).
“Prestons is one of Sydney’s most sought-after industrial precincts with a suburb vacancy rate of just 0.8pc,” the agents said upon listing.
“Prime rents…have increased 5.1pc year-on-year to June, 2025, outperforming the broader New South Wales benchmark of 3.4pc,” they added.
“There are just 8.5ha of active land supply,” according to the executive.
Prestons is about 37 kilometres from town.
Nuveen with Singapore sovereign wealth fund GIC sold a combined 66pc stake in Melbourne’s Myer building for $270.4m.
The Prestons investment is its first since introducing the Asia Pacific Cities strategy.
“This acquisition reflects our growing focus on expanding our industrial footprint across Australia and we’re pleased to be working with Aliro Group on this investment,” a spokesperson said.
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