State Significant Long-Term Quarry Heads to Auction in Newcastle

Martins Creek NSW, May 2024 – A state significant long-term, 127-hectare quarry is set to be auctioned in Newcastle on 22nd May 2024. With an estimated 51 million tonnes of resources and key transportation access, this is a rare offering in the Hunter market.

A state significant opportunity arises with the auction of the Martins Creek Quarry, a significant andesite hard rock quarry operation located at 29 Station Street, Martins Creek NSW 2420. This property offers approximately 127.28-hectare freehold land parcel leased to a leading civil construction company.
With an estimated 51 million tonnes of andesite rock in-situ, this property provides an attractive long-term investment for those in the primary resource and extractive industry sectors. The auction is set to take place on Wednesday, May 22, 2024, at 11 am at the Commercial Collective office located at 10 Newcomen Street, Newcastle.

The property is distinguished by its lease terms of 25 years plus a 10-year option, expiring on November 30, 2047. The current rent for the property is set at $1.61 million per annum and the ratcheted increases are linked to the Construction Material Mining Index. This robust income stream, combined with the property's strategic location, makes it a lucrative proposition for investors or patient long-term owner-operators.

"The Martins Creek Quarry presents a state significant opportunity for investors seeking a secure long-term investment. This type of investment opportunity is quite rare, and we are seeing a large amount of interest from major industry participants.," remarked Matt Kearney, National Director at Commercial Collective. "With its strategic location and substantial in-situ resources, this quarry operation is positioned to capitalise on the growing demand for construction materials in major markets such as Sydney, Newcastle, and the Hunter Valley."

The site’s accessibility to the Pacific Motorway and New England Highway provides excellent connectivity to Sydney, Newcastle, and the Hunter Valley, making it ideal for distribution. Additionally, the site's connection to the main North Coast Rail Line, which links Sydney and Brisbane, underscores its ability to deliver quality product to major markets.

Adam Leacy, National Director at Commercial Collective, added, “The quality of resources combined with the attractive investment return proves to be the two determining factors for the major industry participants interested in this property. We are excited to bring to market such a significant opportunity and we expect bidding from an attractive 10% yield. Martins Creek Quarry presents an excellent investment opportunity, especially considering the ongoing infrastructure development projects in the region."