Leichhardt distribution centre sells for c$15.5 million

Roblan Holdings has sold its distribution centre in Sydney’s inner west Leichhardt for more than $15.5 million ahead of relocating to a purpose-built Ingleburn facility, 40 kilometres further away from the city.

The outgoing complex, 213-233 Catherine Street and 50 Moore Street, is trading to a private syndicate which adds value to Australian east coast industrial properties.

On 4244 square metres of land, its newest property contains two buildings with a total lettable area of 3427 sqm, configured as warehouses and offices. It also includes 18 car parks.

Catherine Street is about 850 metres from Parramatta Road while the Rozelle Westconnex Interchange is 1.4 kilometres away.

The sale price reflects a low 2.4 per cent yield (the vendor offered the distribution centre with a short-term leaseback).

Leichhardt is six kilometres from the Sydney CBD.

In the suburb, last month, Best and Less listed its headquarters with a three year leaseback. On 6264 sqm – a collection of sites acquired over 22 years, this asset is expected to trade for more than $25 million.

eCommerce driving distribution centre demand: agents

Colliers International’s Trent Gallagher, Angus Urquhart and Adrian Balderston represented the vendor of 231-Catherine Street and 50 Moore Street, Robertson and Lansley Pty Ltd.

“The occupier…saw the opportunity to capitalise on the sales market by offering one of the largest single remaining industrial land holdings in the inner west,” Mr Gallagher, national director of the agency’s Industrial division, said.

Colleague Mr Urquhart, senior executive, Industrial, added Colliers International is “seeing increased demand from owner occupiers and investors competing in on-market campaigns for industrial zoned land amidst significant supply withdrawals that have occurred over the past five years”.

“This is also fuelled by the surging eCommerce sector, which has increased the number of users seeking proximity to Port Botany, Sydney Airport, Sydney CBD and Westconnex on ramps, the agent said. “As a result there has been a sustained period of rental value, land value and capital value growth.”

The 3427 square metres of improvements include ample warehousing (above and below).

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco