A Smithfield warehouse set to be vacated by BlueScope Steel has sold for $10.4 million – nearly 20 per cent over reserve.
The buyer is an occupier also in the construction industry.
Fourteen other parties contested for 101 Woodpark Road, according to LJ Hooker Commercial’s Marcel Elias.
The result reflects a low 2.7 per cent yield.
“Owner-occupiers are driving competition as loan repayments are on par with, or significantly less than, some rents tenants are paying across Western Sydney at the moment,” Mr Elias said.
The Industrial 1 zoned Smithfield property, 25 kilometres west of Sydney, spreads a 7334 square metres.
A 2290 sqm warehouse occupies a small part of it.
BlueScope’s steel coating group, Lysaght, is on a lease due to expire mid next year.
MaxCap, Time & Place buy Villawood block from Orica
About a six kilometre drive closer to town, in Villawood, MaxCap Group and Time & Place have picked up a 12.6 hectare industrial development site for a speculated price of just over $70m, with plans for the a business park.
Orica has held the former contaminated site, 2 Christina Road, for more than 50 years; it ceased operating there in 2000 (story continues below).
The proposed c$150 million business park which will be held by the MaxCap Industrial Opportunity Fund.
“The acquisition represented a major milestone for the fund,” MaxCap’s head of direct investment, Simon Hulett said.
“It provides geographic diversification for our portfolio and rare exposure to the highly competitive inner Sydney market,” he added.
“Acquiring a site of this quality off-market is a testament to the perseverance of our team, our development partner, Time & Place, and the strong relationship we have built with the vendor”.
The property will be the fifth for the trust, which is now worth close to $400m, he said.
“Most people acknowledge how difficult it is to acquire prime industrial land in the inner west of Sydney with a lot of developers focused on the outer west and Mamre Rd markets which are still years away from full activation”.
“Villawood is an established industrial precinct that is very tightly held, given there is virtually no new industrial supply in inner Sydney,” Time & Place director Chris O’Keefe added.
Savills’ Michael Fenton brokered the off-market deal.
Orica is presently seeking to sell part of a 150ha west Melbourne site held for 141 years.
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