Pittwater purchases Milperra industrial investment

A part vacant 3.4 hectare property, 339-345 Horsley Road, sold for $22.5 million last year.

Pittwater Industrial has paid $34.2 million for a Milperra warehouse investment.

The deal for 373 Horsley Road is a major windfall for the vendor, Gsan, which acquired the asset for $10.625m in 2015.

That seller, GDI Property Group, held it in the No 38 Diversified Property Trust.

Milperra is about 24 kilometres west of Sydney.

373 Horsley Road, Milperra

On 3.12 hectares, 373 Horsley Road contains 9314 square metres of area within multiple buildings.

UGL is the occupier (story continues below).

UGL occupies 373 Horsley Road.

“With the onset of the COVID pandemic, we have seen investors shift their focus to acquiring well located infill industrial sites of scale, due to the predicted strong rental growth forecasts, that benefit from proximity to major motorways and offer access to large residential catchments,” Colliers’ Gavin Bishop, who marketed the property with Sean Thomson said.

“With the rise in investor demand, we have seen expediated growth in industrial land values, with values increasing almost 55 per cent over the past 12 months,” they added.

The deal comes 13 months since a local investor outlaid $22.5m for a then half-vacant industrial property on 3.4ha at nearby 339-345 Horsley Rd.

Also last year, Icon Foods spent $6.5m on a factory in the suburb to occupy, 9 Sheridan Close.

Another occupier, Handy Foods, snapped up the 1.8ha ex-Balfour Bakery, 312 Horsley Rd, in 2018 – for $13.5m.

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Marc Pallisco

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