Located at 461 Victoria Road, Gladesville, the site has three freestanding warehouse buildings split into seven units varying in sizes and has a B5 Business Development zoning, with a FSR 1:1, and adjoins the recently built Bunnings Warehouse Gladesville. The site is in a superb location in close proximity to the Sydney CBD, major arterial roads and a large number of high-income households.
According to Michael Wall, General Manager, Industrial & Logistics, at Savills Australia, there are multiple value-add opportunities of the site through partial or entire redevelopment.
“There are no industrial sites of this size available in the surrounding area and this asset class continues to benefit from densification and location infill as the population grows and gravitates towards infrastructure.” he said.
Gladesville is located in the inner west of Sydney, approximately 8.5 radial kilometres from the city’s CBD. The suburb is linked to the Sydney CBD and Parramatta CBD via Victoria Road and is in close proximity to the M2 and M4 Motorways which provides direct access for heavy vehicles to the major road network
The E-commerce phenomenon has created a new level of demand for logistics infrastructure, and accordingly, assets and sites in locations previously preferred for traditional retail or Large Format Retail have been surpassed, with the economics now favouring last mile logistics developments (otherwise known as the final step of the delivery process from a distribution centre or facility to the end-user.)
According to data from SA1 Property, the conditions within the Sydney industrial market have strengthened over the last 12 months and demand continues to be driven by the transport, postal warehousing and wholesale retail sectors.
Industrial and logistics remains an attractive asset class for investors, driving the sector to record low yields.
According to Angus Grier, Director of GJS Property, this site will significantly appeal to Last mile industrial users; Small to medium local businesses; Trade wholesalers; Large Format retail; Data centres and Storage users.
“The inner west precinct is currently experiencing a shortage of leasing and sale stock for all of the above user groups. As a result of the low stock levels, we have seen significant growth in both sale values and rentals being achieved in the area.
“This will provide a prospective purchaser with great confidence in the end product with regards to not only the values being achieved, but the strong engagement that will be received from these users’ groups” he said.
Over the last 12 months, there has been heightened demand for industrial development sites reflecting a significant growth in land values, particularly within infill localities. Pockets of Central Western Sydney and South Sydney recorded a significant uplift in industrial land values, due to yield compression and a general shortage of stock.
Mr Wall believes industrial occupiers will increasingly seek infill locations surrounding dense populations due to the continued rise of e-commerce and consumer preferences for faster delivery times.
“With transport costs contributing to a significant portion of total supply chain cost, we will see strong
demand for distribution centres and last mile hubs that puts occupiers closer to their customers” he said.
Savills Australia and GJS Property are selling 461 Victoria Road, Gladesville via an Expressions of Interest campaign closing on Thursday 7th October 2021 at 4pm (AEDT).