Demand for quality industrial properties has seen a 10,000-square metre Hume site sold pre-auction to a Sydney-based institutional investor for $4.45 million.
The sale of 78 Sawmill Circuit, negotiated by Colliers International, continues the competition for industrial assets in the ACT.
Director Tim Mutton says there had been strong enquiries from local and interstate investors.
“The vendor indicated an interest in receiving offers before the auction,” he says.
“It’s not surprising we received a strong offer given the demand and competition for the asset.”
The property comprises a hard stand yard of 7541 square metres, plus a warehouse building and a covered work area. It is leased to Ausco Modular until June 2024 with options until 2034.
Just a month earlier, a 5000-square metre site at 4 Sawmill Circuit sold for $4.31 million. It is leased to tyre specialist Bridgestone for 15 years with options until 2042.
Hume has emerged as Canberra’s premier industrial precinct in the last five to 10 years and Mutton highlights key factors in its success.
“The area has benefited from significant capital investment in upgrades to the Monaro Highway and Majura Road,” he says.
“Changing land use has also increased rents and land values in Fyshwick, pushing large warehouse users to Hume.”
Colliers was also active in Fyshwick with the sale of the AXS Business Centre to the Hadley Green Investment Group for $17 million.
The centre comprises five office buildings on 10,102 square metres with 136 car spaces. The centre is occupied by seven tenants, anchored by the federal government.
Other industrial areas are also benefiting from an upswing in activity.
Mitchell is enjoying a buoyant year with its relative proximity to the Hume Highway also making it a popular choice for warehousing and logistics.
Some 20 properties are advertised on All Homes ranging from 90-square-metre office suites to warehouse complexes on nearly 10,000 square metres.
Across the border, George Miller, director of Ian McNamee & Partners, has seen a new level of confidence return to the Queanbeyan market in small industrial properties.
“We’re seeing a lot more activity in factory-style units in the 200 to 600-square-metre range,” he says.
“It’s hard to say what’s driving that pick-up, but it’s likely to be a combination of factors – low interest rates, proximity to Canberra and even people moving into Googong who want to establish or relocate businesses closer to home.”