Quintessential carves up Sydney site
08 SEPTEMBER 2016
Fund manager Quintessential Equity has subdivided and sold off a portion of an industrial estate in south western Sydney, in a deal that will see British fund manager M&G buy part of the site for close to $30 million.
The local group, coowned by Shane Quinn, has been carving up the 65,680sqm site after buying it in 2014 and has worked with French-founded multinational corporation Schneider Electric on realising the best value for the site.
With just 15 per cent of the site occupied by Schneider’s warehouse, Quintessential Equity has worked to best utilise the surplus land and upgrade the facility occupied
by its tenant.
A subdivision of the site was agreed last year with titles issued for three separate lots. Earlier this year, the fist two lots were sold for close to $5.2m, while Schneider remained on the third lot.
Quintessential Equity has now agreed to refurbish the existing Schneider warehouse, doubling its size from 9,928 sqm to 17,513 sqm.
In return, Schneider has agreed a new 12 year lease, which helped to draw in M&G, that has now agreed to buy the lot for $29.75m, reflecting a yield of 6.24 per cent.
The sale to M&G was negotiated by Gavin Bishop of Colliers International.
Mr Bishop said that Sydney’s south west industrial market was “attracting a lot of interest from both domestic and off shore investors”.
“Increased interest in this market has been driven by the significant investment in infrastructure by governments, such as the Moorebank Intermodal, widening of the M5 Motorway and Badgerys Creek Airport,” he said.
Adrian Balderston of Colliers International negotiated the sale of the two land parcels. He said there was “significant interest” from owner occupiers in buying land in Ingleburn.
Quintessential Equity’s Russell Bullen said the company had developed its strategy to meet Schneider’s requirements. “By consolidating, subdividing and upgrading the site, we have optimised the potential of the property,” he said.