A portfolio of six industrial assets in Western Sydney has sold for $71 million after a competitive sale campaign.
Known as the 'Sydney Six', the portfolio – comprising four Wetherill Park assets, a Smithfield property and an Eastern Creek site – boasted a total NLA of 45,850 square metres and an annual income of $4.82 million.
All six assets are 100% leased, with the portfolio offering a WALE of 1.95 years at the date of exchange.
CBRE and Colliers managed the sale campaign on behalf of Simonson Properties, with the sale representing a record price in relation to the short WALE and lease expiry profile.
CBRE’s James Santi said the result highlighted the strength of demand for investment stock that continued to outweigh supply in Sydney’s tightly held industrial market.
He said the 19 offers received reflected a strong demand for Sydney assets underlying the present limit on supply of investment grade assets in the market.
“Buyers are actively seeking risk given the strong occupier market and rental growth prospects," CBRE’s Elijah Shakir said.
"The vendor was able to take advantage of the abundance of capital and record low yields, to achieve a strong result for this portfolio.
“The purchaser was attracted to the portfolio’s multiple exit strategies and concentration in the strong performing Wetherill Park market where we continue to see rental growth, falling incentives and short vacancy periods.”
The portfolio comprised the following assets: