Austral Bricks has divested two adjoining industrial land parcels in Riverwood in a $41 million sale and leaseback deal.
Austral has committed to a partial leaseback of 13,263sqm for a 10-year term with a five-year option.
Sold to a private buyer, the buildings occupy a substantial 90,466sqm land holding, split across two titles.
Mr Edge said the site held potential for redevelopment and asset repositioning, adding that it would suit a range of purposes, such as storage, manufacturing and more.
“The property is one of the south-west market’s largest infill holdings and, thanks to the size and flexibility of the asset, options for use are many and varied,” Mr Edge noted.
Mr Jennings added, “Owners and occupiers are targeting opportunities in Riverwood ahead of the long-awaited Belmore Road motorway ramps. Expected to open in 2019, the two east-facing ramps will offer Riverwood direct access to the M5 South West Motorway – a $32 million project, over 20 years in the making.”
Mr Jennings said owner occupiers and tenants had been migrating down the M5 from South Sydney, following ongoing re-gentrification of the area, in search of increased flexibility, positioning themselves to benefit from the improved infrastructure and overall upgrade of the motorway.
“Overall, we have seen more purchasers seeking to invest in the Riverwood area, where they have previously not been looking,” Mr Jennings said.
Mr Jennings also noted, “The deal was struck following a competitive Expressions of Interest campaign, which had amassed 11 offers at the close of round one – underscoring the increased activity in the area.”