A Bulli industrial site that's the long-time home of a prominent international business is on the market, with the sellers looking to lease back the site.
However, investors are no doubt eyeing the potential for the property to one day be rezoned and become the site of a residential development.
The site, located at 13-19 Franklin Avenue, Bulli is due to be auctioned on October 19.
Co-selling agent, Colliers Wollongong managing director Simon Kersten said the property had a guide "in the vicinity of $20 million"
Mr Kersten said the site could either suit a large development of small warehouses or townhouses; "around 100 of each, give or take".
"Residential would require rezoning, warehouses would not," he said.
He said the listing had attracted interest from "serious property investors" throughout the country.
Sitting on 2.6 hectares of general industrial land, this site consists of a freestanding building split over warehouse and office space, a total floor area of 7750 square metres with 60 on-site parking spaces.
David Brown Santasalo Australia (formerly known as David Brown Gear), who specialise in manufacturing and servicing gearboxes, own the site.
The Bulli site is the Australian base of operations for the global company; they've been based there since 1986.
Following the sale, the site is to be leased-back to David Brown Santasalo Australia for 10 years, with options.
The site has a net return of $1,162,500 plus GST per annum, and currently has a height limit of 11 metres.
Dean Leydecker, managing director of DBS Australia said the sale was to support their growth strategy, as they needed a facility that was more purpose-built.
"But our long-term goal is to move somewhere in the Illawarra, to a 'centre of excellence' for gear manufacturing," he said.
"We want a purpose-built gearbox facility in the Illawarra... It will take us ten years to do that.
"We want to continue on in the Illawarra and support the Illawarra, and all our employees."
Mr Leydecker said their Bulli site would have long-term appeal for investors.
"There's the location of the facility - we're surrounded by residential," he said.
"When we first moved there in '86, there were only paddocks, and it got built up around us.
"The long-term investment would be a no-brainer for someone who has the money and investment portfolio to come in, get a guaranteed return on their investment for at least the next 10 years, and then it could be a knockdown-rebuild for residential.
"It's a great opportunity for us to stay in the Illawarra."
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Brendan Crabb
I'm a member of ACM's national property team, covering the Illawarra and South Coast. Based in Albion Park, NSW, I write about exciting, interesting or just downright quirky properties that have been listed for sale, major sales, market trends, auctions and more. One of my favourite aspects of being a journalist is I believe everyone has a story to tell. What's yours?
I'm a member of ACM's national property team, covering the Illawarra and South Coast. Based in Albion Park, NSW, I write about exciting, interesting or just downright quirky properties that have been listed for sale, major sales, market trends, auctions and more. One of my favourite aspects of being a journalist is I believe everyone has a story to tell. What's yours?
