The site in Alexandria has easy access to Sydney Airport, Port Botany and the city centre (Image: Colliers)
Australia’s government-owned postal operator is seeking more than A$320 million ($222.7 million) for two Sydney industrial properties, after raising about A$286 million from the sale of eight warehouses in a sale-and-leaseback round earlier this year.
Australia Post has appointed Colliers to sell 10-24 Ralph Street in Alexandria, an inner-city industrial precinct, and 51 Sargents Road in Minchinbury, in western Sydney. The postal operator will stay in both facilities under long-term leasebacks, paying combined net rent of about A$17.6 million a year with fixed annual increases of 3.25 percent.
The mail carrier is releasing its latest tranche of sheds as Sydney’s industrial market remains a magnet for capital, with JLL reporting that investment activity rose to about A$1.2 billion in the second quarter of 2026, about 91 percent above the ten-year average, with prime yields having held steady after tightening in the second half of 2025. CBRE expects investment activity to strengthen through the second half of the year, and notes that just over a third of the 2026–27 development pipeline is already pre-committed.
“The depth of domestic and global capital targeting industrial real estate has continued to broaden with investors increasingly focused on the quality and durability of income alongside the underlying real estate,” said Gavin Bishop, managing director for industrial and logistics at Colliers. “Assets with government-backed entities, strong locations and meaningful land value are particularly relevant in the current market.”
Sales Deliver a Profit
The new listing comes as property sales prop up Australia Post’s bottom line. The letter and parcel carrier reported a pre-tax profit of A$31.8 million for the year ended June, but said it would have recorded an underlying loss of A$107.6 million without one-off property sales. The company in April announced a plan to sell logistics facilities in Sydney, Queensland and Adelaide through a sale and lease-back programme that aimed to raise A$400 million.
Australia Post CEO Paul Graham is selling sheds to raise cash (Image: Australia Post)
At the A$320 million guide price, buyers would pay at least A$6,119 per square metre of gross lettable area, according to a Mingtiandi calculation. The price implies a passing yield of 5.5 percent, and the combined rent is about A$337 per square metre a year.
The two sites cover a combined 12.7 hectares (31.3 acres) of land and hold 52,295 square metres (562,898 square feet) of lettable space.
Each property is being offered through its own expressions of interest campaign, closing on 6 November, according to Colliers. Bishop is running the campaigns with colleagues Trent Gallagher, Michael Crombie and Sean Thomson.
Alexandria Holding
The 3.65-hectare Alexandria site includes a 18,632 square metre distribution facility with a warehouse, offices, awnings and hardstand. The property sits in the corridor linking Alexandria, Rosebery and Green Square, close to Sydney Airport, Port Botany and the city centre.
The site is “one of the largest remaining industrial single-title assets in the precinct”, said Gallagher, Colliers’ national director of property sales and leasing. He said it could support “industrial intensification, industrial strata, data centres, life sciences and commercial uses”, subject to council approval.
The Minchinbury property sits on nine hectares near the M4 and Westlink M7 motorways. Its 33,663 square metre cross-dock warehouse, office and workshop cover about 37 percent of the site. Occupiers nearby include Aldi, Bunnings, Woolworths and Australia Post’s own StarTrack courier arm. Institutional landlords in the area include Charter Hall, ESR, Irongate and Mirvac.
Starwood Capital, Singapore’s Doma Infrastructure and Telstra have received development approval to build a 62 megawatt hyperscale-ready data centre on the adjoining site at 42 Sargents Road, which is scheduled to enter service in early 2028.
First Round Falls Short
Australia Post has raised an estimated A$286 million through the sale of eight facilities this year, according to a Mingtiandi tally of reports on the transactions, leaving it short of the A$400 million target set at the start of the exercise.
The largest sale from that tranche was the Granville Gateway Facility in western Sydney, which Prudential Finance said was sold to the Holdmark Group for A$110 million.
In Brisbane, Charter Hall paid A$70.2 million at a 5.75 percent yield for a facility in Darra. Pittwater Industrial paid A$48.4 million for a facility in Northgate, residential developer Boldstone bought a Gold Coast distribution centre for an estimated A$29.6 million, and four Adelaide sales brought in about A$27.6 million combined, according to Real Estate Source.