Council quietly fills $80m warehouse bought for park
In a surprise move, the City of Sydney has found a tenant for an enormous property bought last year to repurpose as a park.
Van conversion and fit out group Vanable has committed to the 5291 square metre showroom/warehouse at 22 O’Riordan Street, Alexandria, doubling its footprint in the area.
Council paid $80.3 million for the 7436 square metre holding, also facing Johnson St and Ngamuru Avenue, settling last December.
A resolution to rezone the land for a park was passed this year.
Colliers’ Michael Crombie and Jeremy Green brokered the subsequent lease deal off-market.
No rent was disclosed but the space was seeking $125 per sqm, per annum, for a short-term, during a 2022 leasing campaign.
Council turns investor
Council bought 22 O’Riordan St from Markham which paid $61.2m in late 2019, immediately pushing forward with plans for a five level campus style office with 20,000 sqm.
After COVID, a similar scale or larger data centre was suggested as a development outcome.
It had been retained as an investment, for decades until 2022 occupied by Mercedes-Benz.
The Vanabale lease is the suburb’s biggest by area in 12 months, Mr Crombie and Mr Green said.
It is also south Sydney’s third largest this calendar year, they added.
Alexandria is about five kilometres south of Sydney’s CBD.
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