Western Sydney industrial site in future "residentially focused" area tipped to fetch $37 million
An industrial property in western Sydney is expected to sell for $37 million – more than double what it last sold for in 2015.
Owners Camellia Link Pty Ltd bought the 3.6-hectare site in Camellia for $14.6 million in September 2015, and is believed to be surprised by the expected sale price.
Market sources estimate the property to net $37 million, with industrial properties in the area selling for more than $1,000 per square metre.
“This is a very good area to buy,” CBRE selling agent Michael O’Neill says.
“It is zoned industrial three, which is heavy industrial, and land rates have gone up 30 per cent in the past 12 months. There is a strong demand for a range of users to access this kind of land.”
Number 37a-39 Grand Avenue partly fronts Parramatta River and currently has three tenants: AutoNexus, KLF Holdings and Transdev NSW, which are using the site for storage. The tenants are on short-term leases with break clauses.
Various industries such as agricultural products, hardware and building supplies, medical centres, rural supplies, timber yards and water storage facilities are permitted on the land.
“The property has strong rental growth opportunity and regular diversified cash-flow from current tenants in excess of $1.2 million per year,” Mr O’Neill says.
Suburb makeover
Camellia is facing a potential transformation into what the Department of Planning and Environment has dubbed a “new riverside community” in the next 30 years, with the state government’s draft Camellia Town Centre Master Plan guiding the future development of the industrial area.
“Ever since the Camellia Town Centre draft plan came out, there has been a flurry of activity from institutional investors, large developers and even government,” says Khoury & Partners’ Jon Race, who is also selling the property.
“There is no doubt in the future this will be residentially focused and the planned changes going ahead are exciting.
“The expected light rail expansion through Camellia will bring more people to the area.”
It is proposed that stage two of the Parramatta Light Rail will extend east through Camellia before crossing the Parramatta River to Rydalmere and passing the site.
Camellia is an established industrial precinct and is earmarked as a major centre for high-density living.
“While it is an industrial area now, I expect in the future to see residential developments,” Mr O’Neill says. “Even now, I see it as a good opportunity to build smaller industrial sheds.
“There is no doubt that the area will be transformed in the future.”
CBRE’s Frank Oliveri and Khoury & Partners’ Anthony Khoury are also marketing the listing.
Expressions of interest close August 15.
