The investment market for industrial property is the strongest developers and agents say they have seen for many years.
This is mainly driven by the weight of capital chasing investment products both domestically and offshore, low interest rates and significant investment in infrastructure by government, being about $80 billion over the next four years.
According to Colliers International's national director of industrial, Gavin Bishop, the sales market continues to perform strongly, driven by low interest rates and strong demand across the board from strata to large vacant-possession buildings.
"We expect this to continue for the second half of the year. We are also experiencing strong demand for industrial land from both developers and owner-occupiers. This has resulted in a strong increase in land values above 10 per cent, year-on-year for all Sydney submarkets," Mr Bishop said.
One of the latest deals to be offered by a private consortium of property executives, understood to include former Macquarie Bank chief executive, Allan Moss, is a 65-hectare development site within the Riverstone West employment precinct.
It has the potential to accommodate more than 220,000 square metres of industrial floor space in stage one and immediate access to passenger rail, with Vineyard station located on the boundary of the site.
It is being sold though Colliers International's Mr Bishop and director of industrial, David Hall, who said it was one of the largest industrial-zoned opportunities to come to market in more than two decades.
The property comes to market as the entry of the online giant, Amazon, has also sparked interest in industrial land with development potential, as it will need large warehouses.
No price was disclosed, but other similar sales have been more than $100 million.
"Western Sydney is now under pressure to deliver land to meet the needs of the industry, including those businesses that are relocating from the eastern markets, which are undergoing a change of use to residential," Mr Bishop said.
He said land prices in Sydney's west had been steadily increasing, now well over $500 per square metre in several key western markets, with some smaller lots (circa 5000 square metres) recently trading as high as $594 per square metre in Eastern Creek.
BRE's Alex Mirzaian, Frank Oliveri and Peter Vines are also selling three landholdings in Kellyville and Vineyard.
Mr Mirzaian said subdivision development sites were the most in-demand assets in western Sydney at present given Sydney's current undersupply of middle housing stock.