CSR to sell 11-hectare industrial site to close out Viridian sell-off
Luke Housego
CSR is seeking to raise about $60 million from the sale of an industrial property in Sydney’s west following a decision to sell out of its glass manufacturing business.
The production and warehousing facility at 8 Williamson Road, Ingleburn, has a gross lettable area of 34,061 square metres.
The proceeds from the sale, however, will do little to offset the $1 billion loss borne by CSR shareholders following the company’s 10-year foray into glass manufacturing, which ended with the sale of the Viridian business to private equity firm Crescent Capital Partners in November.
Viridian Glass, the country’s biggest glass products manufacturer, will remain as tenant under a nine-year lease.
CBRE’s Jason Edge and Chris O’Brien are managing the sale campaign on behalf of CSR.
“We are anticipating significant interest from onshore and offshore parties given the size, scale and location of the site, as investors continue to actively pursue assets offering long lease expiry profiles and development upside,” Mr O’Brien said.
The property is situated in a land-constrained area, offering access to the Hume Motorway and the South Western Freeway.
Mr Edge noted that close to 22,000 square metres of land was available for immediate development, subject to the relevant planning approvals.
“Sydney’s south-western industrial precinct remains highly sought after by investors and occupiers, which has underpinned significant growth in land values,” Mr Edge said.
“The Ingleburn market, in particular, is well located to capitalise on the local skilled labour force, with the site’s proximity to major road infrastructure and the soon-to-be-completed Moorebank Intermodal Terminal expected to be another buyer draw card.”
Viridian, with products including double-glazed windows for commercial and residential customers, has faced strong competition from international suppliers in recent times.
