Greystar snares five east coast industrial sites

A hardstand component at 26 Ferndell Street.

Greystar has established an Australian industrial development pipeline with the purchase of five east coast assets.

The 2.9 hectare Pinkenba site.

At 26 Ferndell Street, Chester Hill, or South Granville, Sydney, the US based property giant has paid the McMillan family $95 million for a 5.1 hectare brownfield site, the McMillan Industrial Estate, with over 25 units and 8000 square metres of hardstand.

In Melbourne meanwhile, the group has picked up a 2.1ha block at 36-38 Roberts St (pictured, top) from Cadence, which only acquired it in 2020 on behalf of the CPG FM03 Property Trust syndicate, outlaying $10m.

In a show of how fast infill industrial land values have ballooned since COVID, Greystar is paying $23.1m.

On the north west corner of Indwe St, that property includes a 7821 sqm warehouse and vacant tract which is now earmarked for a similar size (c7600 sqm) building.

The other three industrial sites Greystar has purchased are in Brisbane – 483-485 Zillmere Road, Zillmere, 971 Fairfield Rd, Yeerongpilly and 175 Dutton St, Pinkenba.

Relatively new sector for Greystar

The five industrial properties are expected to be worth over $500m when developed.

Greystar only started investing in the sector two years ago – and in the United States where it now holds 25 assets and a development pipeline with over a million square metres (story continues below).

Greystar’s Pinkenba proposal.

“Our growing portfolio of logistics acquisitions across Australia’s major cities represents our targeted entry into the Australian industrial sector,” Greystar’s national managing director, Chris Key, said.

Artist’s impression of a redeveloped Zillmere block.

“Greystar has a proven track record of executing a similar strategy in the US – which has resulted in the current $2.1b (US$1.3b) strong portfolio of industrial and logistics properties,” he added.

“We maintain a high conviction view that there is significant opportunity for Greystar to grow our platform in the last mile and infill logistics sector and this series of investments here in Australia is an exciting milestone,” according to the executive.

More acquisitions are planned, he said, as the group aims to take on other offshore giants recently investing heavily in Australian logistics assets, amongst them, Blackstone, ESR, Frasers Property Industrial and QuadReal.

Last year the investment house launched the Greystar Multifamily Venture 1, backed by Ivanhoe Cambridge and APG Asset Management and with a $1.3b mandate, to construct Australian Build to Rent product.

Earlier this month, its executives, with Albert Park member, Martin Foley, turned the first sod at for a $500m, three-tower Build to Rent investment, in South Melbourne.

Elsewhere in the Victorian capital, the group is constructing another BTR asset in South Yarra.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of