Multi-unit industrial estate in Sydney's Mascot has finally hit the market for the first time in years, providing opportunities to patient investors.
The demand for high-density commercial and residential developments in Sydney’s inner-west suburb of Mascot shows no sign of slowing down, as investors grapple over limited supply in the emerging precinct, just 7 kilometres south of the Sydney CBD.
South Sydney, and in particularly Mascot has experienced significant gentrification over the past three years with many similar industrial sites throughout South Sydney being converted through re-zoning to residential development.
The latest issue facing investors and potential buyers of today is the limited stock available for purchase. However, according to Colliers International, for the first time in many years, Comserv is set to offload its multi-unit industrial estate next month, as the demand for sound investments continues to rise.
Located at 55 Kent Street, the well-presented industrial estate is 100 per cent occupied, with very strong lease covenants including Qantas and International Art Services and a current net income of circa $1.68 million. The property offers a 2.4 year Weighted Average Lease Expiry (WALE) and offers possible redevelopment potential (STCA) to a maximum height of 44 metres.
For sale through Michael Crombie of Colliers International and Joshua Charles of One Commercial, the 7,321.1 square metre building sits on a 11,937 square metre site just 400 metres from Mascot train station and a short distance from Sydney International and Domestic Airports, the M5 Motorway and the new WestConnex.
According to Michael Crombie, national director, property sales and leasing, for Colliers International, “in recent years, Mascot has undergone a major transformation, with multiple residential projects from major players such as Meriton, JKN, and, Bridgehill, as well as increased strip shopping around Mascot Railway and the new Mascot Town Centre Shopping Centre.
“This new amenity has greatly improved the local area, to which land owners have greatly benefited from, and is just one of the key reasons why this precinct continues to be in such demand,” he said.
Mr Crombie went on to say that “strategic investors will always be looking for an angle on any new investment, and with the adjoining properties enjoying office and residential zoning, this well-positioned, corner site provides endless opportunity”.
According to Joshua Charles, managing director, One Commercial, “rarely do industrial investments become available in South Sydney, even rarer is the sale of an entire industrial estate.
“With new high-rise residential towers literally 50 metres away from this site, who knows what the future holds for the purchaser” he said.