Solotel, led by Solomon and business partner Matt Moran, is selling developable land at 176-180 O'Riordan Street in Mascot, about 6500 square metres, with price expectations in excess of $16 million.
Colliers' Michael Crombie and Trent Gallagher said Mascot, near Sydney Airport, already has heavyweight tenants including LOGOS, Qantas, Charter Hall and Goodman. The suburb has strong occupier demand and historically low vacancy levels of around 2.5%.
Crombie said there are multiple developments in planning or underway in the suburb.
The portfolio includes a 115,000 square meter Metcash distribution center in Melbourne.
Fund manager Centuria Industrial REIT last month launched Melbourne's newest industrial estate in Campbellfield, a $116 million project called M80 Connect, half of which is already pre-let. The super-prime facility at 100 Bolinda Road has five warehouses totaling 45,375 square meters on a 7.92 hectare site.
The growth of e-commerce and the trend toward land-based supply chains are creating more jobs and supporting other expanding industries such as infrastructure, logistics and retail that need shelters to operate, said Chief of Centuria Fund Management, Jesse Curtis.
Benjamin Martin-Henry, head of Pacific research at MSCI, said specialist industrials funds are the only property category posting positive total returns.
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“The industrial sector, while still small, is seeing growing interest in specialist areas such as data centres, driven by growing demand for advanced technology infrastructure,” he said.
Greg Goodman said in the recent quarterly update that logistics customers are increasing demand for assets with high automation and technology, which are seen as the “structural drivers of the digital economy”.
“This and the limited supply of space in our markets are supporting the real estate fundamentals underlying our portfolio, with high levels of occupancy and income growth,” Goodman said.
“We are moving forward with our data center strategy and are reviewing additional sites for potential data center use,” he said.
Also in southern Sydney, industrial infill land is being sold with price expectations of more than $40 million. The 16,326 square meter property is located near Port Botany and Foreshore Road at 60-66 Perry Street and 1 Kelly Street, Matraville.
Colliers and The Agency are handling the sale on behalf of Orcades Investments, who have owned the property for over 50 years.
“This flagship site is such a rare offering of scale within the South Sydney industrial precinct, which is the tightest market in the country, and offers great upside through rental reversal and redevelopment,” said Trent Gallagher from Colliers.
The Agency's Michael Laing said values in industrial relief markets such as Matraville rose significantly last year as buyers preferred them to outer ring industrial areas. “We expect this trend to continue,” he said.
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