24 Apr Aldi sells large holding in Sydney’s west
By Carolyn Cummins – Sydney Morning Herald
posted Gino Marra
Supermarket operator Aldi Foods is seeking to raise in excess of $12 million for a large land holding in Sydney’s west.
The 2 hectare parcel of land, deemed surplus to the group’s needs, is zoned B5 lending itself to strata development or land subdivision, according to the Colliers International agents advising the supermarket giant on the deal.
Aldi will use the cash raised for further expansion of its supermarket chain.
”Minchinbury is regarded as one of the most highly sought after industrial precincts in the West, offering excellent access to the Great Western Highway and M4 & M7 Motorways,” Colliers International director of industrial David Hall said.
”We expect this site will appeal to both owner occupiers and developers.”
It comes as the outer west has enjoyed a 22 per cent year on year increase in land values, according to Gavin Bishop and Sean Thomson from Colliers International.
“Industrial unit strata rates across Sydney have hit an all-time high, with prices now recorded at
$4000 per square metres in Smithfield,” Mr Thomson said.
In the latest report on the sector, Colliers International’s associate director research, Sass J-Baleh, conditions in the industrial property market remain strongest in Sydney and Melbourne, which is consistent with the relatively higher economic growth in these states.
”Although the eastern seaboard is the focus both nationally and globally, there is a heightened interest in Sydney,” Ms J-Baleh said.
” Land price increases, coupled with persistent demand, are expected to place upward pressure on rental values – for both existing buildings and the pre-lease market – as well as raise the value of infill locations over the next 12 months.”
According to Knight Frank’s head of industrial, NSW Matthew Lee, the positive business conditions and economic outlook have also been the catalyst for a number of speculative developments recently entering the market.
“A combination of strong underlying economic fundamentals and consistent tenant demand has seen a strong pipeline of speculative stock across Western Sydney. Knight Frank is tracking major projects across the all major regions with the majority in the outer and south western markets,” Mr Lee said.
“We are also seeing a rental differentiation between pre lease and speculative developments – in addition to this we have seen recent leasing transactions continue to be dominated by 3PL/Transport users along with retailers and food groups. ”
Knight Frank’s head of industrial in Victoria Gab Pascuzzi, said total Melbourne industrial vacancy remains 27 per cent below the peak levels of October 2016.
“The prime vacancy rate of 482,793 square metres is currently sitting at a two-year low, with prime space dominating take-up and limited prime additions to vacancy over the past six months,” Mr Pascuzzi said.
”The Melbourne market has recorded the highest levels of take-up across the east coast over the past six months, accounting for more than half of all take-up recorded across the Sydney, Melbourne and Brisbane markets.”
He said these requirements have often had shorter lead times which have been a further attraction for developers to speculatively build.