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News release

Sydney

The biggest land area sale in South Sydney in nearly two years

Approx. 9.3 h/a of industrial land at 2-28 McPherson Street, Banksmeadow has been sold to Goodman on behalf of Orica for AUD 33.1 million


​​SYDNEY, 2 JULY 2014 – In the biggest land area sale in South Sydney since December 2012, a large parcel of industrial land has been sold to Goodman by Orica for AUD 33.1 million. The only larger site transacted in recent years in the wider South Sydney area was a 109,560 square metre industrial development site at Lot 4, 260 Captain Cook Drive, Kurnell in December 2012 for AUD 6.11 million, sold by Perpetual Nominees Limited to a private developer. 

The property, comprising approximately 9.3 hectares, is located at 2-28 McPherson Street, Banksmeadow. Also known as ‘Southlands’, the site is strategically situated opposite Port Botany. The property includes approximately 6.3 hectares of developable land area, with the balance being dedicated to a landscaped open area.

JLL’s NSW Managing Director and National Head of Industrial Michael Fenton managed the sale with JLL’s Head of Metropolitan Sales and Investments – NSW, Sam Brewer.

According to Mr Brewer, “The size of the deal is strong affirmation that South Sydney industrial land remains highly sought after. Rarely do such strategic land holdings come to the market in South Sydney, which is widely regarded as Australia’s most valuable and tightly-held industrial precinct.

“Australia’s industrial market is currently experiencing a lack of investment-grade opportunities, making asset accumulation a difficult and protracted proposition. Major owners of industrial property need to create their own product to grow their portfolio, and major land holdings such as Southlands that are located in core markets provide a rare opportunity,” said Mr Brewer.

According to Mr Brewer, the property was highly in demand due to its location. “Developers and industrial occupiers appreciate the potential benefit to their supply chain by securing a large amount of space in this location. With transport generally accounting for over 50 per cent of the total supply chain cost of most industrial businesses, a location in such great proximity to Port Botany is highly prized,” said Mr Brewer.

The property features 24/7 access, multiple access points, and is B-double approved for trucks. The project is approved for subdivision into six super lots, with approval for warehousing and office buildings.

According to Orica’s Daniel Wise – Group General Manager, Property, “The Southland transaction is a good result for Orica. The sale price achieved reflects the strong fundamentals of the Botany precinct for industrial land. The transaction is consistent with our strategy of remediating and recycling property that is surplus to the company’s requirements. Options for the remainder of the site remain under active consideration.”