White Fox Boutique founders Daniel and Georgia Contos have paid $87 million for 19 O'Riordan Street, Alexandria, a 1.31-hectare warehouse and office complex in Sydney's inner south. The property has been held by the family behind brand distributor True Alliance since 1992.
The deal shows how much owner-occupiers will pay for large freehold sites close to the CBD and airport. It also confirms the Contos family as one of the most active private buyers in South Sydney this year.
The deal at a glance
- Asset: 19 O'Riordan Street, Alexandria NSW
- Price: $87 million
- Site: 1.31 hectares with 134 metres of frontage
- Improvements: about 11,437 sqm
- Zoning: E3 Productivity Support, FSR 2.5:1 (potential for about 32,850 sqm)
- Buyers: Daniel and Georgia Contos, founders of White Fox Boutique
- Seller: interests associated with the Hendler family (True Alliance)
- Agents: Colliers (Michael Crombie, Trent Gallagher)
A complete operational campus
The site has been purpose-built over three decades. It includes a warehouse with 10-metre clearance, a 1,219 sqm mezzanine, a three-level office, a theatre, a retail showroom and 102 car parks, some undercover.
The Hendler family built the facility on land held since 1992. Through True Alliance, they distribute brands including Lacoste, Speedo, The North Face, UGG and Wrangler across Australia and New Zealand.
Why White Fox is buying
White Fox started in 2013 as an eBay-based business and has grown into an international fashion retailer. The property is expected to become a distribution centre, giving the brand a large logistics base just five kilometres from the CBD.
It is the latest in a run of local purchases. In March the Contos family paid Goodman $70 million for an office in nearby Rosebery, now renovated as White Fox's headquarters and less than a kilometre away. They also bought an office from Goodman last year.
Location is the value
Alexandria sits between Green Square station, Sydney Airport and Port Botany. For a brand shipping to customers across Sydney, that location means faster delivery and easier staff access. Colliers' Trent Gallagher noted that large freehold sites in the precinct are contested by many different users, from logistics to creative and commercial occupiers.
Land with a long-term upside
The E3 zoning and 2.5:1 floor space ratio allow for a building of about 32,850 sqm, almost three times the current improvements. So while the site meets an immediate operational need, it also holds long-term redevelopment value in one of Sydney's fastest-changing precincts.
Owner-occupiers versus investors
Large inner-city industrial sites usually attract three kinds of buyer: investors chasing leased income, developers chasing future density and owner-occupiers who need the space for their own business. In this case an owner-occupier won out. Owner-occupiers can often pay more because the property solves an operational problem for them, saving on rent, freight times and staff travel all at once.
It also says something about the strength of Australian consumer brands that have grown up online. A business that started on eBay just over a decade ago now owns two major properties within a kilometre of each other in one of Sydney's most valuable industrial precincts.
What it means for the market
- Owner-occupiers with growing businesses remain some of the strongest buyers in South Sydney
- Large freehold holdings near the CBD are rare and command premium prices
- Flexible zoning lets buyers price both current use and future density
Lessons for owners and developers
- Long holds pay off: land bought in 1992 has sold into a deep market of well-funded buyers
- Zoning sells: clear development capacity widens the buyer pool
- Show the potential: massing studies and renders of future uses help buyers see the land value beyond the current buildings
What to watch next
Watch how quickly White Fox moves its distribution into the site and whether other inner-south freehold holdings come to market as owners test this level of pricing.