TNT factory turned business park fetches $330m
Brookfield Properties has sold a three month old business park developed on an ex-Orica site, west of town.
Connect Central Sydney at Villawood is collecting $330 million from Gateway Capital in partnership with the Ontario Teachers’ Pension Plan and Korea Investment Corporation.
With 12 buildings, the asset will be held by the Gateway Capital Urban Logistics Partnership (GULP), now managing some $850m of product.
CBRE’s Chris O’Brien and Jason Edge were the agents.
The 12.6 hectare site, which produced TNT during the second world war, underwent a 12 year remediation and clean-up operation in the early 2000s.
Brookfield, with Time & Place as development manager, picked it up in September, 2022, from MaxCap’s Industrial Opportunity Fund, permit-ready for the business park.
Next chapter for ex-TNT factory
At 2 Christina Road, Connect Central Sydney contains 69,000 square metres – 25 per cent of which is vacant (story continues below).
The trade price reflects a 5.6pc capitalisation rate.
It is also nearly six per cent less than the (c$350m) end value promoted by the developers upon its completion late last year, when it said occupancy was 90pc.
The sale comes 18 months since Gateway for GULP paid Dexus just over $300m for the 19.6ha Axxess Corporate Park, in Melbourne’s Mount Waverley.
The same seller in 2022 sold Gateway with Invesco, for the Urban Infill Logistics joint venture, an office in Sydney’s St Leonards for $118.5m.
Villawood is 27 kilometres from town.
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