The transaction marks one of the strongest results for a strata industrial property in the Auburn area, reflecting continued demand for secure, high-quality industrial investments in Sydney’s western corridor.
The campaign drew 43 enquiries and multiple offers from qualified investors. Kamal Silwal of RWC Sydney City Fringe, who managed the sale, said, “This was an incredibly strong result in today’s market. Most investors are targeting returns around 5.5 to 6 per cent, so to achieve a 4.16 per cent yield is exceptional. We filtered our buyers carefully and ultimately secured an outstanding offer of $11 million, well above initial expectations.”
The property comprises a building area of 2,416sqm and a strata area of 2,635sqm, with 28 car spaces on title and an additional area for container drop-off. Zoned E4 General Industrial, it is fully leased to international banking group MUFG, generating a net passing income of $458,333 + GST per annum, with 100 per cent of outgoings paid by the tenant.
Mr Silwal added, “Many people couldn’t believe we achieved this price. It wasn’t just about the tenant, it was about the location and the growth profile of the Auburn area. Once buyers understood the long-term fundamentals and the calibre of the tenant, they realised how rare this opportunity was.”
The property was held by three partners, two of whom owned their shares through superannuation. Following a detailed assessment of market conditions, the vendors decided to bring the property back to market. “We knew timing was everything,” said Mr Silwal. “We analysed how a potential rate cut could affect valuations and made sure we went to market strategically. The result speaks for itself.”
The buyer, an Asian investor group, secured the asset following a competitive negotiation process. According to Silwal, the strength of the result highlights both the quality of the tenant and the appeal of the Auburn industrial precinct.
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