The Goodman Group has boosted its asset base with the $343 million purchase of the 14.4 hectare Sydney Corporate Park in Alexandria from Rathdrum Properties, run by the Hannan family.
In a separate transaction, the Goodman Australia Industrial Fund acquired a 1.98 hectare site in Rosebery for $37.4 million. It is zoned industrial and comprises three buildings with a total leasable area of more than 19,600 square metres.
The Sydney Corporate Park and Rosebery acquisitions consolidate Goodman's leading presence in the industrial market and increase its total south Sydney portfolio to more than $2.1 billion.
Sydney Corporate Park was one of the largest acquisitions in the area for some time, and the high price pointed to the demand and low supply of sites in the south Sydney and surrounding areas industrial property market. Most development sites are being snapped up by investors for residential projects.
This was evidenced by Mirvac, which recently acquired a prime residential development site in Bondi for $53.5 million from the Benevolent Society.
It is located at 18-22 Ocean Street and has the potential to deliver more than 200 residential dwellings as one, two and three bedroom apartments at mid price points.
Goodman general manager Australia Jason Little said Sydney Corporate Park was a strategic long-term asset for the fund's portfolio. It would add value through site improvements.
"We are well positioned to deliver this ... to attract additional quality customers and delivering long-term value for GAIF's investors," Mr Little said.
He said the park was one of the largest land parcels in the area, located at the southern end of O'Riordan Street and bounded by Bourke Road and Doody Street.
The property comprises a mix of industrial and business space, accommodating more than 80 clients.