9 August 2004

St Hilliers has acquired a 5 hectare industrial site at 184-194 Milperra Road, Revesby, adjacent to Bankstown Airport and its recently completed bulky goods precinct for approximately $16.5 million.

The purchase follows St Hilliers recent sale of a property in Moorebank to Macquarie Goodman Industrial Trust for $18.5 million.

Revesby is an established residential and industrial suburb 20 kms from the Sydney CBD. It has been a preferred location for a number of industrial uses from manufacturing to warehousing and has seen renewed interest since the completion of the M5 Motorway.

The area is an integral part of the surrounding residential catchment and is seen as a desirable location for industrial and bulky goods and owner/occupier tenants.

St Hilliers property is an older style industrial development and is located at the intersection of Milperra Road and Marigold Street. With two street frontages each of about 160 m, the property has 24,000 square metres of improvements and existing medium to longterm leases in place.

Gavin Bishop and Peter Dale, of Colliers International, introduced the project to St Hilliers in an "off-market" acquisition. Purchased at an initial yield of 8.6%, St Hilliers believes the property is currently underlet and that there is a significant reversion in the rental.

St Hilliers Group Managing Director, Tim Casey, said: "The Revesby property is a well located, strategic asset in an area, which will enjoy strong growth over the next five to ten years."

"Given that the property has good exposure to Milperra Road and is suitable to a number of future uses including subdivision, bulky goods or industrial development the end redevelopment options are extensive."

"The property is also well positioned to benefit from the redevelopment of the Bankstown Airport into an industrial business park and bulky goods precinct. The term of the existing leases will see the area well established prior to the redevelopment of the asset."

He added that the Bankstown Airport redevelopment had led to a rejuvenation of the Revesby area with many older style factories being replaced by modern warehousing and bulky goods facilities.