Industrial property development and management company, Goodman, has purchased a parcel of industrial land for $33.1 million, in what is the biggest land area sale in South Sydney since December 2012.
The property, comprising approximately 9.3 hectares, is located at 2-28 McPherson Street, Banksmeadow. Also known as ‘Southlands’, the site is 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.
“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," said Mr Brewer.
“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 project is approved for subdivision into six super lots, with approval for warehousing and office buildings.
