Global fund managers swoop on $62m Sydney logistics site
An alliance comprising Switzerland based Partners Group and the United State’s Realterm has purchased its maiden Australian property – a land rich industrial investment in Sydney’s Chipping Norton, for $62 million.
The 4.15 hectare rectangle block with just 2000 square metres of improvements, 77 Governor Macquarie Drive, is split as eight tenancies.
Part zoned IN2 Light Industrial with the balance, IN3 Heavy Industrial, it was marketed for its medium-term development upside, including with multi-level product.
“Sydney’s southwest logistics submarket has experienced strong market rental growth, has near zero vacancy and is experiencing significant supply/demand imbalance, providing a strategic opportunity for Realterm to enter the Australian market,” according to Toni Ryan, fund manager with the local arm of the US based group.
“We continue to see robust pipeline opportunities across Australia and are excited about expanding this venture with Partners Group,” she added.
Elsewhere in Australia, Partners Group with Propertylink last year sold a North Sydney office, 73 Miller Street, snapped up in 2017 with ESR which it then bought out, to UBS Asset Management and Private Markets, for $400m.
Another fund manager invests in Chipping Norton
The Governor Macquarie Road deal comes two years since Aliro paid $60.5m for adjoining industrial investments covering 4.91ha in the suburb, 24 and 30-40 Alfred Street, with plans to replace it with a business park after next year.
That transaction priced land at $1232 per square metre (story continues below).
Partners Group and Realterm by comparison are paying $1494.
LJ Hooker’s Ryan Jennings represented the vendor, a private local family which has held since the 1980s, closing an expressions of interest campaign last September.
A deal was sealed in November.
“The family appreciated the scarcity of large freehold sites available in the corridor and decided now was the optimum time to divest,” the agent said.
“The property benefits from a 100 metre frontage to Governor Macquarie Drive with convenient connections to the A22 and M5 arterials,” he added.
“Demand for well-located industrial property amongst southwest Sydney tenants remains high with the supply chain benefits o the M5 corridor and proximity to the Moorebank and Enfield intermodals,” according to Mr Jennings.
“Realterm and Partners Group’s investment is a vote of confidence in Sydney’s southwest as a key logistics hub”.
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