Centennial snaps up outer Sydney industrial sites
Centennial, with Pirrama Capital Partners, has snapped up an industrial site beside the St Marys Intermodal Terminal, on Lee Holm Road.
Actually two lots – 55-67 and 69-81 – the 6.87 hectare site cost $32.15 million.
The vendor is Pacific National, which is delivering the infrastructure project.
The deal comes five months since realestatesource.com.au reported Centennial bought a 2.05ha Wetherill Park office/warehouse on behalf of a mandate managed for Brookfield.
In December, Centennial bought a seed asset for its first open-ended trust – the Metro Industrial & Logistics Fund – at Prestons leased to PACT Group subsidiary Jalco.
CBRE’s Jason Edge, Cameron Grier and John Micallef marketed 55-81 Lee Holm Rd individually or as a whole.
Interlink Logistics Estate
Zoned E4 General Industrial, the Lee Holm Rd parcels were marketed for their development upside, within a large residential and commercial catchment in a precinct (the outer north west) which has experienced 86 per cent rental growth since 2021.
The rail spur connects to Port Botany.
The road access to the M4 and Great Western Highway is also straightforward.
The Western Sydney Airport is about 15 kilometres north.
An eight-lot subdivision around two large warehouses is planned – a business park to be known as the Interlink Logistics Estate, with a conservative estimated end value of c$102m.
The buildings will contain 12,225 square metres (continues below).
The subdivided lots will span between 3000-8000 sqm, expected to sold down and make way for smaller-format industrial product.
Centennial funded the acquisition through its closed-end Centennial Interlink Logistics Estate Trust, which raised $27m targeting an internal rate of return of c25pc over a 30-month term.
“The flexibility in exit options for investors was a key driver in the fund successfully raising capital in such a short period of time,” Centennial head of capital, Alex Edwards, said.
“The development of our new St Marys Interlink Logistics Estate offers investors extremely attractive total returns and a clear exit strategy by delivering differentiated product into an already established and expanding industrial and logistics precinct,” he added.
Maiden partnership
Centennial chief executive Paul Ford added the project is the first with Pirrama, founded by Jonathan Herb and David Ruston, which will be the development manager.
“This is a strategic development services partnership with PCP and we’re looking forward to an ongoing relationship with them … they’ve developed some tremendous projects, particularly in Sydney’s west,” he said.
“With Interlink, we intend for a quick sell down of the industrial lots that command premium street frontages on Lee Holm Drive,” according to the executive.
“Demand for industrial subdivisions particularly in the smaller lot category is intensifying and it’s a sector we’re looking very closely at,” he added.
“A pre-sales and leasing campaign will commence prior to construction start, with sell-down of the eight-lot subdivision and, the built form anticipated, within three to six months after practical completion.
“We’re confident in outperforming the estate’s forecast value of $102m”.
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