Gibb Group has secured a strategic foothold in Sydney’s western growth corridor, acquiring a fully leased Mount Druitt industrial estate below replacement cost for $50 million.
The group has added a 4.58ha multi-tenanted estate at 91 Kurrajong Avenue about 30km west of the Sydney CBD to its assets.
The transaction highlighted ongoing investor confidence in Sydney’s logistics sector, particularly for assets with value-add potential, CBRE head of Western Sydney industrial Elijah Shakir said.
The site has undergone significant refurbishment, redevelopment and repositioning since its original acquisition, according to Shakir, who managed the sale with CBRE national director—capital markets, industrial and logistics Jason Edge.
“The location is also due to benefit from significant infrastructure upgrades,” Shakir said.
The Mount Druitt property comprises a two-level office building and warehouse with 8.5m clearance and on-grade roller doors.
The site offers dual hardstand areas with B-double access via Kurrajong Avenue and Wainwright Road.
The property generates net income of $2.5 million a year from tenants including Combined Warehousing Solutions, Earthworx, Paramedical and Sunnyfield.
According to a report from valuers Preston Rowe Paterson, the deal was struck at $2744 a square metre of GLA.
Gibb Group chief executive Matthew Gibb said the acquisition provided “significant opportunity to create value through leveraging our active management approach to refurbish and reposition the existing functional improvements”.
The property’s previous owner, Leda Holdings, implemented a comprehensive value-add strategy after acquiring the site in 2016, including the development of a 2500sq m warehouse with surplus hardstand.
Leda managing director Rob Ell said, “The area is strong with great amenities, it’s close to a Westfield shopping centre and major infrastructure.
“It’s a great long-term asset and we are happy Gibb Group has acquired the property,” Ell, who is the son of billionaire rich-lister Bob Ell, said.
Gibb said the development, investment and asset management company had plans to build on this acquisition by actively growing its exposure to similar well-located industrial and logistics assets in key metropolitan markets.
Not more than 8kms away, Leda Holdings has plans for a 68-unit industrial development on a 19,772sq m vacant site at Wetherill Park it bought for $24.75 million in 2021. Projects in Cobaki near the NSW-Queensland border, a highrise development at Cronulla and a riverside community at North Ipswich, west of Brisbane, are also in the works for Leda.
