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Billionaire veteran private developer Bob Ell’s Leda Holdings is adding to his recent deals and taking advantage of the booming demand for warehouse space in Sydney’s south with the sale of a large holding offering development potential.
The 5495 square metre property at 32 Cawarra Road in Caringbah in the Sutherland Shire is a refurbished commercial asset and comes with a leased area of 3026 sq m. The corner landholding is said to be attractive to a value-add investor looking for a strategic position within one of southern Sydney’s strongest investment markets.
A 5495 sq m property at 32 Cawarra Road Caringbah is being sold by Leda Holdings 
Colliers director Trent Gallagher, Edward McFarland, Gavin Bishop and Sean Thomson are advising Leda and said price expectations for the site are around $26 million. The agents also advised Leda on the recent sale of a 1.37 hectare logistics estate near Sydney Airport to new industry entrant Pittwater Industrial for $66.75 million.
“This refurbished high-quality and appealing commercial asset is strategically located to provide crucial amenity within one of Sydney’s most tightly held infill industrial and commercial precincts,” Gallagher said.
McFarland added that the property location is in the centre of what is called Caringbah’s “destination precinct”, which is home to domestic and corporate occupiers including Shimano Australia, Reece Plumbing, Australia Post, Woolworths, Hertz Car & Truck Rental.
The industrial deals are being driven by tenants who are stockpiling items in the lead-up to the busy Christmas shopping frenzy to avoid disruption from the ongoing supply chain issues, according to leading dealmakers.
LJ Hooker Group’s head of research, Mathew Tiller, said tenants have been seeking to store more inventory rather than take the risk with supply chain disruptions.
He said e-commerce tenants in particular have been aggressively seeking more storage space, amid high levels of online retail spending.
“We’ve seen significant growth in rents across industrial, largely because developers are having to lift their pre-lease rents to account for higher land values and escalating construction costs,” Tiller said.
In a separate deal and in response to demand for storage, real estate manager Centuria Capital has boosted its exposure to the sector with the acquisition of a distribution centre at 69-79 Diesel Drive, Paget in Mackay, Queensland for $35.5 million.
The acquisition, which was secured on a 7.24 per cent market yield, will be the seed property for Centuria’s new single-asset, closed-ended unlisted real estate fund, Centuria Industrial Income Fund No. 2.
The purpose-built, 13843 sq m industrial facility is 100 per cent leased to Wesfarmers’ safety supplies subsidiary, Blackwoods, on a 6.1-year lease with annual CPI-linked rent reviews.
Centuria joint chief executive Jason Huljich said the central Queensland acquisition captures the strong tailwinds of the domestic industrial market while “harnessing the sector’s robust rental growth, driven by low vacancy rates and constrained supply”.
“Furthermore, Mackay is strategically positioned to service a significant North Queensland catchment area including Cairns, Townsville and Mount Isa,” he said.
Centuria has paid $35.5 million for a distribution centre at 69-79 Diesel Drive, Paget in Queensland.
The fund will aim to provide an initial five-year term, monthly distributions and has a forecast starting distribution yield of 6.50 per cent per annum in 2023 financial year, rising to 6.75 per cent per annum in 2024. Centuria will seek to raise $22.4 million to launch the fund.
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