Warehousing and LogisticsLindsay SaundersTue 30 Jun 26
Goodman Offloads Western Sydney Industrial Asset for $127.5m
Goodman has offloaded a major industrial estate in Western Sydney for $127.5 million in an off-market transaction brokered by Colliers.
Sydney-based BKC has partnered with MEC Global Partners Asia, the Asia-Pacific investment arm of Mitsubishi Estate, to acquire the Smithfield asset, about 30km west of the Sydney CBD.
The property at 3 Herbert Place comprises a 28,746sq m multi-tenant warehouse and logistics facility across a 73,900sq m freehold site, with a relatively low site coverage of 39 per cent that provides future flexibility for asset management and repositioning.
The estate is fully leased to a diversified tenant mix including Fluidra Group Australia, Kingspan Water & Energy and Monde Nissin Australia, providing an initial passing yield of 3.94 per cent and a weighted average lease expiry of about four years.
The property was sold by a Goodman-managed fund as part of the industrial giant's ongoing capital recycling program, following a string of major portfolio transactions completed this year.
Colliers national director of industrial and logistics Trent Gallagher said investor appetite for institutional-grade industrial assets in core Western Sydney locations remained exceptionally strong.
“The result highlights the strong demand we’re seeing for high-quality industrial assets in core Western Sydney locations, particularly those offering scale, secure income and significant rental reversion and investors are increasingly focused on opportunities where they can capture rental growth over the medium term,” Gallagher said.
He said opportunities of comparable scale and quality rarely came to market, with domestic and offshore investors continuing to target well-located logistics assets.
"Opportunities of this scale and quality are rarely brought to market and there continues to be strong interest from domestic and offshore groups looking to deploy capital into well-located logistics and industrial assets,” he said.
The acquisition aligned with BKC and MEC Global Partners Asia's strategy of targeting core-plus industrial investments in tightly held logistics markets where value can be created through active asset management, rental growth and future repositioning, the partners said.
BKC is a Sydney-based specialist real estate investment manager focused on industrial property and data centres formed in 2024. It reportedly manages more than $400 million in real estate assets.
In the heart of the Smithfield industrial precinct, the estate is near the M4 and M5 motorways and Sydney’s major freight network.
Goodman’s activity in the sector has remained strong this year.
Its rollout of mega-sized data centres continued in January with a SEARs request filed for the $5-billion Project Atlas.
Weighing in at 500MVA and with a gross floor area of 99,310sq m across two buildings of three and four storeys, the Eastern Creek proposal is the latest in a slew of multibillion-dollar server sheds from the industrial developer and manager.
The 17ha site at 10 Roberts Road, about 35km west of the Sydney CBD, is bounded by SP2 Infrastructure zoned land intended for electricity transmission and distribution, and for water supply services.
In April, Goodman secured approval for its redesigned $206.4-million warehouse and distribution centre in Sydney’s south-west.
Consent covers 1-3 Burrows Road at St Peters, a 3.46ha site in Southern Employment Lands near Sydney Airport, Port Botany, the Cooks River Intermodal Terminal and the St Peters WestConnex interchange.
And in June, Japanese-owned beer and soft drinks giant Asahi and Goodman Group broke ground on the Redbank Motorway Estate south-west of Brisbane.
Slated to be fully operational by 2028, the high-tech, $150-million, 48,500sq m warehouse will integrate sophisticated robotics and a high-speed shuttle system designed to streamline its logistics network.
