RWC Industrial City South's Costa Fragias has successfully negotiated the sale of 22 McCauley Street, Matraville for $4.1 million excluding GST, reflecting a net yield of 5.26 per cent.
The property, which is leased to a blue-chip tenant and generates a current net income of $216,000 per annum plus outgoings and GST, attracted strong interest due to its combination of secure income, freestanding improvements and strategic infill location near Port Botany.
Mr Fragias said the result demonstrated the resilience of the industrial sector and highlighted where investor capital continues to be directed in the current market.
"Despite ongoing interest rate pressures and broader economic uncertainty, investors remain highly motivated to secure quality industrial assets that offer strong fundamentals and long-term security," he said.
"This transaction shows that well-leased freestanding industrial properties continue to command a premium, particularly in land-constrained precincts where opportunities to acquire comparable assets are extremely limited."
The sale was completed off-market after the vendor approached RWC Industrial City South to explore alternative strategies following an extended public marketing campaign.
"Recognising the property's unique attributes, we immediately activated our network of qualified investors and were able to secure a buyer and negotiate terms within just one week," Mr Fragias said.
"It was a strong outcome for both parties and highlights the value of targeted off-market strategies when matched with the right asset and buyer pool."
Situated on a 540sqm site with a total building area of 551sqm, including a DA-approved mezzanine, the property features a high-clearance warehouse, modern office accommodation, container access and six on-site car spaces.
Located 500 metres from Port Botany, six kilometres from Sydney Airport and 12 kilometres from the Sydney CBD, the asset occupies a strategic position within one of Australia's most tightly held industrial markets.
Mr Fragias said the scarcity of freestanding industrial stock continued to underpin pricing and buyer competition.
"Freestanding industrial properties provide occupiers and investors with a level of flexibility, independence and control that is increasingly difficult to find," he said.
"With industrial land in established infill locations becoming harder to source and even harder to replicate, investors are recognising the long-term value these assets offer.
"The yield achieved in this transaction reflects both the quality of the asset and the depth of demand that still exists for secure industrial investments. It provides a strong benchmark for owners considering their options in today's market."
The property was sold with approximately 3.5 years remaining on the current lease term, plus a five-year option, further enhancing its appeal to investors seeking stable and secure income streams.
