Property development group, Primewest Development, has appointed Full Tilt Construction Pty Ltd to construct its $65 million industrial estate, Interlink Strathfield in Sydney’s inner west.
Designed by leading Australian architect, Rothelowman, the estate comprises 65 strata title industrial units with sizes ranging from 150sqm to over 1,000sqm, and 23 strata titled storage warehouse units sized from 24sqm to 43sqm.
Having officially launched sales in February this year, the project is now approaching 70% sold. The project has been well received by the market with purchasers being attracted to the estate’s central location and proximity to the CBD.
Primewest Development Director, Rob Thomas, said he is excited to bring the project to life and deliver a state-of-the-art development.
Interlink Strathfield: a next generation industrial estate due for completion in 2020
“Our vision upon acquiring the site was to deliver a ‘next generation’ industrial estate offering a range of architecturally designed industrial units featuring contemporary mezzanine office facilities, ample parking, wide driveways and a number of dedicated 40-foot container loading zones.”
“Interlink offers dual street access with frontage to both Cosgrove Road and Cleveland Street, which facilitates articulated vehicle access. A number of units have private secure yards which is also a unique offering in this asset class.
“Interlink Strathfield represents an exceptionally rare investment opportunity suited to small businesses, SMSFs, trade contractors, logistic companies and e-retailers alike,” Mr Thomas said.
Conveniently located opposite the Enfield Intermodal Logistics Centre, Interlink Strathfield is only 30mins to the CBD, providing easy access for small to medium businesses, particularly those in e-commerce, looking to secure a central location to base their delivery system for what is known as ‘the last mile’.
Strathfield is a high demand industrial hub in Sydney’s inner west due to its proximity to the CBD.
Scarcity of industrial land close to the CBD
Mr Thomas said the key benefit for both investors and owner-occupiers alike is the scarcity of industrial land that exists in the inner Sydney metro area.
“Only 11 percent of Sydney’s industrial land is within 30-minutes of the CBD, so once it gets snapped up, there are very few other opportunities to acquire it, and it traditionally has a very low turnover rate”.
“Because of its rarity, there is solid scope for capital growth with industrial land supply shortages continuing to be an issue. As an investment product, industrial units provide higher rental returns than residential property, returning an estimated 4.5 to 5.5+ percent yields compared to only a 3 to 4 percent for a residential property.”
“Now is the time to shine for industrial property in Sydney with the residential sector facing falling property prices and other issues plaguing the off-the-plan market. Buyer confidence in residential is at record lows so we see this as a significant opportunity to make some headway in the industrial space to win over some of those private investors looking for a stable, no-mess, low-risk asset with good rental yields,” Mr Thomas said.
“There are numerous benefits to investing in industrial property over residential including fixed rent reviews, longer term tenancies, large depreciation benefits and tax benefits, and minimal ongoing maintenance expenses. Typically, all outgoings are recoverable from tenants, which is not the case with residential” he said.
“Interlink Strathfield offers the ultimate in flexibility with businesses able to amalgamate units to suit their specific needs.”