Brookfield pays $203.5m for Mainfreight logistics centre
Brookfield is buying a south-west Sydney distribution centre that Goodman progressively developed and expanded around occupier Mainfreight over more than two decades.
The 45,780 sqm facility covering 8.5 hectares at 30-50 Yarrawa Street, Prestons, is changing hands for $203.5 million.
The property was squarely suited to investors.
Goodman acquired the first part of the holding in 2005 for $24.8m as Liverpool City Council moved to rezone the surrounding area from rural to industrial use.
Mainfreight pre-committed in 2007, initially occupying two warehouses with a combined 20,510 sqm, with two offices, surrounded by a weighbridge, covered truckwash, refuelling facilities and hardstand.
The year later, the warehouse was extended 7574 sqm.
Goodman expanded onto adjoining land at 30-40 Yarrawa Street in 2012-13, adding 13,250 sqm of warehouse floorspace, a 1710 sqm loading dock extension, hardstand and office facilities.
The estimated cost was $12.5m.
The expansion allowed Mainfreight to consolidate its Moorebank warehousing operations at Prestons (continues below).
BKC to become manager
Brookfield is expected to settle on the fully-leased investment this month.
Co-Head of Real Estate in Australia Ruban Kaneshamoorthy said the acquisition would strengthen the group’s Australian logistics portfolio.
BKC will act as Brookfield’s operating partner and manage the property, he added.
It also manages the New York-based landlord’s Laverton logistics asset in Melbourne.
With the acquisition, the company’s Australian logistics platform has a completed value of about $3 billion.
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