IndustrialHudson FarrWed 14 Oct 26
Australia Post’s $320m Sydney Listings Put Redevelopment in Play
Australia Post is testing investor appetite for two Sydney industrial sites worth more than $320 million, with long-term rental income and redevelopment potential offering buyers two distinct plays.
Colliers has been appointed to sell 10-24 Ralph Street at Alexandria and 51 Sargents Road, Minchinbury in Western Sydney, through separate campaigns. Australia Post will remain the tenant at the sites under long-term leasebacks.
The properties total about 12.7ha of land and 52,295sq m of gross lettable area. They generate a combined net income of about $17.6 million a year, with fixed annual rent increases of 3.25 per cent. Expressions of interest are due to close on November 6.
The latest listing come after Australia Post raised about A$286 million from the sale of eight warehouses in a sale-and-leaseback round earlier this year.
Colliers national director Trent Gallagher said the Alexandria site could suit a range of future uses.
“This generational Alexandria property represents one of the largest remaining industrial single-title assets in the precinct with significant longer-term development potential,” he said.
“The holding is underpinned by income from Australia Post and could support a range of future strategies including industrial intensification, industrial strata, data centres, life sciences and commercial uses, all [subject to approval].
“We expect it to attract strong interest from both domestic and offshore capital.”
The Alexandria site covers about 3.7ha and includes an 18,632sq m distribution facility with warehouse space, offices, awnings and hardstand. It sits in the Alexandria, Rosebery and Green Square growth corridor, near Sydney Airport, Port Botany and the CBD.
Colliers said little investment stock had come to market in Alexandria in recent years because the precinct was tightly held and land continued to shift to higher-value uses.
The Minchinbury property covers about 9ha of freehold land and includes a 33,663sq m facility with a cross-dock warehouse, corporate office and workshop. Site coverage is about 37 per cent, which leaves room for operational or development changes, subject to approvals.
The site has access to the M4 and Westlink motorways. Nearby occupiers include Aldi, Bunnings, StarTrack and Woolworths, alongside owners Charter Hall, ESR, Irongate and Mirvac.
Colliers national director Sean Thomson said investment in surrounding logistics and digital infrastructure was lifting the precinct’s importance, including an approved two-storey, 62MW data centre on the adjoining site,
Colliers managing director Gavin Bishop said the investor demand for industrial property was broadening, with buyers focused on “the quality and durability of income alongside the underlying real estate”.
Bishop, Gallagher, Thomson and Michael Crombie are leading the campaigns.
