Australia Post Seeks Over A$320 Million for Sydney Industrial Assets
Australia Post is selling two major Sydney industrial properties via a sale-and-leaseback deal to raise over A$320 million, reflecting strong investor demand for logistics assets.
Australia Post has engaged Colliers to sell two industrial properties in Sydney for a combined price exceeding A$320 million. The state-owned corporation will market 10-24 Ralph Street in Alexandria and 51 Sargents Road in Minchinbury through separate expressions of interest campaigns closing on 6 November.
Australia Post will continue operating from both facilities under long-term leaseback arrangements. The agreements include fixed annual rental increases of 3.25 percent, ensuring the postal service retains operational control while unlocking capital from its real estate portfolio.
Pricing and yield metrics reflect current industrial market strength
At the A$320 million guide price, the portfolio implies a passing yield of 5.5 percent. Buyers would pay at least A$6,119 per square metre of gross lettable area. The properties generate a combined commencing net income of approximately A$17.6 million annually.
Assets combine for significant scale in strategic logistics corridors
The two sites cover a combined 12.7 hectares of land and provide 52,295 square metres of lettable space. The specific details of each property are outlined below.
| Property | Land Area | Building Area | Key Features |
|---|---|---|---|
| 10-24 Ralph Street, Alexandria | 3.65 hectares (approx. 36,500 sqm) | 18,632 sqm | Distribution facility with warehouse, offices, awnings, and extensive hardstand areas. |
| 51 Sargents Road, Minchinbury | 9 hectares (approx. 90,000 sqm) | 33,663 sqm | Cross-dock warehouse, corporate offices, workshop, with about 37% site coverage. |
Strategic location and nearby development enhance investment appeal
The Alexandria site sits in the corridor linking Alexandria, Rosebery and Green Square, providing access to Sydney Airport, Port Botany, and the city centre. Trent Gallagher, managing director for industrial and logistics at Colliers, said, "The Alexandria site is one of the largest remaining industrial single-title assets in the precinct." The site could support future industrial intensification or alternative uses like data centres, subject to council approval.
The Minchinbury property is near the M4 and Westlink M7 motorways, connecting to Sydney’s major freight corridors. The surrounding precinct houses major operators like Aldi, Bunnings, Woolworths, and Australia Post’s StarTrack. A significant nearby development is an approved 62 megawatt hyperscale-ready data centre on the adjoining site at 42 Sargents Road, scheduled to enter service in early 2028.
This divestment is part of a broader strategy by Australia Post to monetise its property holdings. The organisation reported a pre-tax profit of A$31.8 million for the year ended June, but stated it would have recorded an underlying loss of A$107.6 million without one-off property sales. Earlier this year, it raised about A$286 million from the sale of eight warehouses in a similar sale-and-leaseback round. Notable transactions from that first tranche included the Granville Gateway Facility sold for A$110 million and a Darra, Brisbane facility bought by Charter Hall for A$70.2 million at a 5.75 percent yield.
Expressions of interest for both the Alexandria and Minchinbury properties close on 6 November.
