Goodman Splashes $76m on Alexandria Shed

In what has been slated as the biggest sale of the year in Alexandria, industrial giant Goodman has put its foot on a 12,530sq m freehold site with 9909sq m of building improvements. 

But according to Colliers’ Michael Crombie and the team that inked the deal alongside CBRE, the location has set the new benchmark price for the industrial core investment market. 

The prime industrial site at 118-124 Bourke Road is a high-exposure site along a major thoroughfare through Alexandria, an inner-southern suburb of Sydney. 

The site, formerly owned by an entity called 118 Bourke Road Pty Limited with directors listed as Lu Min Yong, Wei Li Phua, Hon Yee Chang, and Michael Francis Pilkington, last changed hands for $19 million in 2014. 

“The pricing achieved for this Alexandria investment is testament that well-located, good quality buildings always achieve superior pricing,” Crombie said.

“South Sydney has seen limited investment product come to market in 2024, as the majority of stock sold has been for a higher and better use.

“The interest from the REITs was extremely strong.”

▲ Goodman’s recently opened data centre in Hong Kong, the Goodman Tsuen Wan West precinct.

The property has a strong income profile with a weighted average lease expiry of 4.2 years, CBRE’s Jason Edge said. 

“The South Sydney industrial precinct remains in high demand from both investors and global capital,” Edge said. 

“The bidding was extremely competitive due to the high-quality improvements and strong underlying land value, providing groups various short and longer-term optionality.”

Goodman Group has significant holdings within Alexandria, including 35-39 Bourke Road, 45 Burrows Road, 1-3 Burrows Road, 63 Campbell Road and 45-49 O’Riordan Street. 

While shareholders may have voted down Goodman chief executive Greg Goodman’s pay package, the industrial juggernaut is focused on the development of its infrastructure pipeline. 

Goodman has large landholdings all over the world, but it is currently concentrating on its 5gW pipeline of data centres, which reportedly could have an end value of more than $50 billion. 

The developer is pivoting heavily into the data centre industry with estimations it would deliver more data centres than sheds within a year.