Austral Bricks sells Riverwood property for $41 million with partial leaseback

Austral Bricks has divested two adjoining industrial land parcels in Riverwood in a $41 million sale and leaseback deal. 

The properties at 62 Belmore Road and 111 Bonds Road were sold to a private buyer.

The buildings occupy 90,466 square metres, split across two titles.

Austral has committed to a partial leaseback of 13,263 square meters for a 10-year term with a five-year option.

CBRE’s Ryan Jennings and Jason Edge inked the sale and negotiated the partial leaseback.

Edge said the site held potential for redevelopment and asset repositioning.

“The property is one of the south-west market’s largest infill holdings and, thanks to the size and lexibility of the asset, options for use are many and varied,” Edge said.

Jennings said owner occupiers and tenants had been migrating down the M5 from South Sydney.

“Owners and occupiers are targeting opportunities in Riverwood ahead of the long-awaited Belmore Road motorway ramps,” he said.

“Expected to open in 2019, the two east-facing ramps will offer Riverwood direct access to the M5 South West Motorway – a $32 million project, over 20 years in the making.

“Overall, we have seen more purchasers seeking to invest in the Riverwood area, where they have previously not been looking.

 “The deal was struck following a competitive Expressions of Interest campaign, which had amassed 11 offers at the close of round one – underscoring the increased activity in the area.”