Wetherill Park warehouse value multiplies in nine years

The Wetherhill Park asset returns net annual rent of $1.014 million.

A land-rich Wetherhill Park industrial investment with development upside has sold between locals for $25 million.

The result for 23 Davis Road demonstrates a low 4.056 per cent yield based on the revenue mid-year.

It also reflects a significant gain on the previous sale result – $7m in 2014.

The rise – a land value of $1250 per sqm from $350 per sqm, or 257pc – is part attributed to the NSW Ports Master Plan 2063 – which is anticipating the region will accommodate close to a third of the state’s imports in the long term.

Income with medium-term development upside

With a 2028 square metre building covering 10pc of 23 Davis Rd, the asset was marketed for its medium term development upside; the tenant, Sanjeev Gupta’s Infrabuild, is on a lease expiring in 2028 with a break clause available to the new owner, from 2025 – also when a rent review is scheduled (story continues below).

The agreement calls for rent rises of CPI or 3.5pc – whichever is greater.

“Sydney continues to be a focus for industrial buyers, particularly for land-rich assets,” CBRE’s Elijah Shakir, who marketed the asset with Jason Edge and Bishop Barton Cottle and Brendan Ham, said.

“The campaign attracted interest from both owner occupiers and investors due to existing site approvals as well as the new lease which provided flexibility to both purchaser groups,” he added.

Wetherill Park is 34 kilometre’s west of Sydney’s CBD.

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Marc Pallisco

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