Two warehouses in Sydney’s Inner West have sold at auction for a combined $9 million as the city’s industrial market heats up.
A Penrith warehouse sold for $4.755 million and an office building in Kings Park was secured for $4.105 million, with both assets drawing significant investor interest.
CBRE oversaw the sales campaigns for the two properties and low levels of similar stock across the Harbour City led to two fierce auctions.
Listing agent Brendan Wein helped negotiate the sale of the 1,791sqm Penrith warehouse at 63 Leland Street on behalf of Rise Projects to a private investor.
“With five years remaining on the existing lease, bidding was really competitive, underpinned by the limited availability of investment stock in this size and price range,” he says.
Meanwhile in Kings Park, the office warehouse at 9 Melissa Place was acquired by Napier Holdings Pty Ltd after receiving 125 inquiries during a powerful marketing campaign.
CBRE’s Matthew Alessi says the office asset’s location drove six bidders to battle it out for the property, with the hammer eventually coming down $100,000 above the reserve price.
“Given the tightly held nature of the location and the fact that the lease is at market rents with an upcoming lease expiry, the property was highly sought-after by both owner-occupiers and investors,” he says.
It’s thought that similar significant industrial sales will continue as favourable market conditions are capitalised upon by savvy buyers from both Australia and overseas.
“The industrial market has been extremely resilient and this, coupled with record low interest rates and limited land supply in the short to medium term, has attracted strong interest in available investment opportunities,” Matthew says.