Visy has sold a Penrith manufacturing plant for $17.25 million with a leaseback.
The 4.2 hectare site, 126 Andrews Road, is trading to Sydney based private investor Sandran Property Group.
The purchaser owns other commercial real estate in the suburb and elsewhere in Sydney’s west, at Homebush and Bankstown.
Based on the starting annual rent Visy will pay at Penrith ($1 million net), the sale price reflects a 5.8 per cent yield.
The vendor offered the investment tenanted until 2027, with options.
The asset has long-term redevelopment options – the only structure, a double storey 8956 square metre office/factory, spreading just 21 per cent of the site.
Penrith is nearly 60 kilometres west of the CBD and about half that to Parramatta.
It is 20 kilometres north of Badgerys Creek where the Western Sydney International (Nancy Bird Walton) Airport – and an aerotropolis is planned to open within seven years.
“Amidst the current COVID-19 health crisis, the focus for investors has now become the occupancy, tenure and covenant solvency for well located, income producing industrial assets,” Mr Bishop and Mr Thomson said.
“Visy Penrith gained immediate market attention because it provides one of the most secure cash flows in industrial real estate,” they added.
In March, Visy listed a 7.5 hectare packaging plant with residential redevelopment potential in Melbourne’s Broadmeadows, with a three year leaseback and c$20 million price hopes.