Frasers Property Australia has acquired a 15.19 hectare site in the well-established Inner West industrial area of Chullora.
The Chullora site comprises a six hectare parcel of land fronting Muir Road on the adjoining 9.19 hectare parcel that will be subject to a 20 year triple net lease to SUEZ Recycling & Recovery Pty Ltd.
Frasers Property Australia General Manager Northern Region Ian Barter said Chullora is a highly sought after industrial precinct with few opportunities to purchase large sites of this calibre in the area.
"This acquisition provides us with the immediate opportunity to deliver a mix of pre-committed and speculative space with an estimated end value of $55 million, to take advantage of the low vacancy rates, limited future land supply and higher rentals achievable in this area.
"The site is expected to attract strong interest from online retail groups and organisations who need to be located closer to their customer base and Sydney’s metropolitan areas."Mr Barter said the acquisition will further boost the company’s capacity to service the growing needs of major Australian and international groups in the Sydney market.
CBRE Regional Director Jason Edge said the Chullora purchase further highlights the continued strong demand from developers looking to secure land within Central Western Sydney.
"This is driven by the need for occupiers to remain within close proximity to Sydney’s CBD and the recent rezoning of Melrose Park and Homebush, which is putting additional pressure on supply.”
The site is strategically located 18 kilometres west of Sydney’s CBD, close to the Hume Highway and six kilometres from the M4 motorway.
Major tenants in Chullora include Volkswagen, Australia Post, News Limited, Toll, Fantastic Furniture, Primo and BlueScope Steel.
In re-stocking its industrial landbank, Frasers Property has also acquired a 10 hectare site adjacent to its Eastern Creek Business Park in Western Sydney.
Melbourne acquisitions were beside existing industrial parks owned by Frasers Property including a 20 hectare site located at 18 Archer Street, Truganina beside West Park Industrial Park and two additional land parcels (combined area of 15.72 hectares) adjacent to The Key Industrial Park on Perry Road in Keysborough.