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The site in Smithfield will be developed into a 50,000 sqm logistics estate
SYDNEY, 28 MAY 2012 – Charter Hall’s Core Plus Industrial Fund has acquired an 11.9 hectare industrial development site in Smithfield for $16 million after staving off competition from a number of other high profile developers.
The deal, which was negotiated by Andrew Maher and Casey Greenberg of Jones Lang LaSalle, represents the largest industrial development site sale in New South Wales since the Global Financial Crisis.
Mr Maher, Head of Industrial, NSW at Jones Lang LaSalle said, “This transaction sets a revised yardstick in terms of industrial development site pricing. We are at a point in the market where developers are now able to achieve solid margins on major industrial sites.” In commenting on the property, Mr Maher said, “This was the last remaining “super lot” for sale in the inner ring of Sydney so it was a rare opportunity that attracted serious interest from a number of developers.”
Mr Maher added that the new development is expected to attract significant interest from industrial tenants looking to distribute goods across metropolitan Sydney.
“Given the location of the property, the new development will appeal to tenants operating in the metropolitan distribution network. Being just 750 metres from the Cumberland Highway and having direct access to the soon to be opened Reconciliation Road providing another link to the M4 is a great advantage.”
Paul Ford, Fund Manager of the Charter Hall Core Plus Industrial Fund said, “We were attracted to the site due to its flexibility and location within the land constrained inner west market of Sydney. The Smithfield /Wetherill Park and Greystanes markets provide quite a large number of captive tenants that have a strong desire to stay in the area, with a number of pre-lease negotiations already well progressed. The Fund has historically focused on tightly held core locations to create investment product, rather than compete with large numbers of developers in locations with an oversupply of land such as the outer west in Sydney or west in Melbourne”
The site was previously owned by TransGrid.
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