Australia Post Seeks $223M for Sydney Warehouses as Property Sales Prop Up Earnings

Australia’s government-owned postal operator is looking for more than A$ 320 million($222.7 million)for 2 Sydney commercial homes, after raising about A$ 286 million from the sale of 8 storage facilities in a sale-and-leaseback round previously this year.

Australia Post has actually designated Colliers to offer 10-24 Ralph Street in Alexandria, an urban commercial precinct, and 51 Sargents Road in Minchinbury, in western Sydney. The postal operator will remain in both centers under long-lasting leasebacks, paying combined net lease of about A$ 17.6 million a year with set yearly boosts of 3.25 percent.

The mail provider is launching its newest tranche of sheds as Sydney’s commercial market stays a magnet for capital, with JLL reporting that financial investment activity increased to about A$ 1.2 billion in the 2nd quarter of 2026, about 91 percent above the ten-year typicalwith prime yields having actually held constant after tightening up in the 2nd half of 2025. CBRE anticipates financial investment activity to enhance through the 2nd half of the year, and keeps in mind that simply over a 3rd of the 2026– 27 advancement pipeline is currently pre-committed.

“The depth of domestic and international capital targeting commercial property has actually continued to widen with financiers significantly concentrated on the quality and sturdiness of earnings together with the underlying property,” stated Gavin Bishop, handling director for commercial and logistics at Colliers. “Assets with government-backed entities, strong areas and significant land worth are especially pertinent in the present market.”

Sales Deliver a Profit

The brand-new listing comes as home sales prop up Australia Post’s bottom line. The letter and parcel provider reported a pre-tax earnings of A$ 31.8 million for the year ended June, however stated it would have taped a hidden loss of A$ 107.6 million without one-off home sales. The business in April revealed a strategy to offer logistics centers in Sydney, Queensland and Adelaide through a sale and lease-back program that intended to raise A$ 400 million.

Australia Post CEO Paul Graham is offering sheds to raise money(Image: Australia Post )

At the A$ 320 million guide rate, purchasers would pay a minimum of A$ 6,119 per square metre of gross lettable location, according to a Mingtiandi computation. The rate indicates a passing yield of 5.5 percent, and the combined lease has to do with A$ 337 per square metre a year.

The 2 websites cover a combined 12.7 hectares (31.3 acres) of land and hold 52,295 square metres (562,898 square feet) of lettable area.

Each residential or commercial property is being provided through its own expressions of interest project, closing on 6 November, according to Colliers. Bishop is running the projects with coworkers Trent Gallagher, Michael Crombie and Sean Thomson.

Alexandria Holding

The 3.65-hectare Alexandria website consists of a 18,632 square metre circulation center with a storage facility, workplaces, awnings and hardstand. The home beings in the passage connecting Alexandria, Rosebery and Green Square, near Sydney Airport, Port Botany and the city centre.

The website is “among the biggest staying commercial single-title possessions in the precinct”, stated Gallagher, Colliers’ nationwide director of residential or commercial property sales and leasing. He stated it might support “commercial accumulation, commercial strata, information centres, life sciences and business usages”, based on council approval.

The Minchinbury residential or commercial property rests on 9 hectares near the M4 and Westlink M7 freeways. Its 33,663 square metre cross-dock storage facility, workplace and workshop cover about 37 percent of the website. Occupiers neighboring consist of Aldi, Bunnings, Woolworths and Australia Post’s own StarTrack carrier arm. Institutional property owners in the location consist of Charter Hall, ESR, Irongate and Mirvac.

Starwood Capital, Singapore’s Doma Infrastructure and Telstra have actually gotten advancement approval to construct a 62 megawatt hyperscale-ready information centre on the adjacent website at 42 Sargents Road, which is arranged to go into service in early 2028.

Round Falls Short

Australia Post has actually raised an approximated A$ 286 million through the sale of 8 centers this year, according to a Mingtiandi tally of reports on the deals, leaving it except the A$ 400 million target set at the start of the workout.

The biggest sale from that tranche was the Granville Gateway Facility in western Sydney, which Prudential Finance stated was offered 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 center in Darra. Pittwater Industrial paid A$ 48.4 million for a center in Northgatedomestic designer Boldstone purchased a Gold Coast circulation centre for an approximated A$ 29.6 million, and 4 Adelaide sales generated about A$ 27.6 million integrated, according to Real Estate Source.