Aon Ari to exit two western Sydney logistics sites
Sydney-based investment platform Aon Ari Property has moved to sell two industrial sites in the city’s west, an offering that could fetch as much as $45 million in total.
Led by founder John Joannou, Aon Ari has been busy leasing up the two assets: at 66 Christina Road in Villawood and at 30 Loftus Road in Yennora.
The Villawood property comprises a fully leased, multi-tenanted building with an average lease expiry of 3.3 years and a net passing income of $1,668,019.
The Yennora facility is also fully leased. It comprises 8052 square metres of space and sits on 22,000 square metres of land.
Two years ago Aon Ari executed a $4 million refurbishment and redevelopment program. The property now has an a 4.8-year average lease expiry and net income of $1,360,131.
Among its tenants, Aon Ari last year signed up PFM Corp for the lease of a 4557 sq m warehouse with 4570 sq m hardstand at the Loftus Road property.
Also last year construction equipment specialist Porter Group signed a five-year lease for the Yennora facility.
Aon Ari has appointed CBRE’s Jason Edge, Elijah Shakir and Michael O’Neill to broker the two properties.
Mr Edge said the opportunity held the potential for upside, either through rental growth or additional development.
“While Villawood and Yennora were once considered as secondary locations, the significant shortage of land and urban growth in Sydney means both areas are now viewed by occupiers as prime, strategic infill locations, supported by strong transport connectivity to the Sydney CBD,” he said.
“The strong growth in rent and land values in both markets has seen stronger interest from investors over the past year, with major institutional players growing their portfolios with key acquisitions.”
Industrial land value growth in Sydney is up 13.9 per cent annually over the past five years, amid heightened demand and lack of available stock.
Mr Shakir said that income producing assets in Sydney’s inner west had been hard to come by in the past year, particularly multi-tenanted estates “that are land rich and positioned within close proximity to rail and transport”.e
