LOGOS, backed by the Abu Dhabi Investment Authority – a partnership known as the LOGOS Australia Logistics Venture (LALV) – with AustralianSuper, has picked up four major industrial sites near Sydney’s Kingsford Smith Airport from Qantas.
The outlay is $802 million – some $200m over expectation.
It is also the biggest price paid for a Sydney industrial portfolio.
Covering 13.8 hectares, in Mascot, the deal includes a 21,795 square metre distribution centre leased to the vendor.
A 9.865ha portion will now make way for a four-level ramp up, logistics, e-commerce and last mile logistics hub which upon completion is expected to be worth $2 billion.
“The consortium and Qantas have also entered into discussions regarding potential future development options for the sites, including the creation of a dedicated precinct for Qantas, as well as the sale of…three hectares of land that adjoins some of the lots being sold,” LOGOS added in a statement.
The transaction increases the value of LOGOS’ assets under management in Australia and New Zealand to $13b.
$8 billion in unsatisfied capital: agents
Colliers’ Michael Crombie, Gavin Bishop, Trent Gallagher and Sean Thomson represented Qantas. Neil Murray, Rebecca Ngan and Dwight Hillier, of the agency’s Strategic Advisory team, introduced the buyer (story continues below).
“The…expressions of interest campaign generated significant domestic and offshore attention and will be noted as the most prominent sales campaign of 2021, with in excess of $8 billion of unsatisfied capital left to place within the Australia industrial sector from the unsuccessful bidders,” Mr Crombie said.
“To acquire this site at Mascot is a rare opportunity to further develop a market leading e-commerce, distribution and commercial hub between Sydney ports and the ultimate distribution destinations in Australia’s main gateway city,” the manager’s head of Australia and New Zealand, Darren Searle, added.
“The site is a key freight gateway for the airport and offers unparalleled connectivity as a critical link to supply chains around the country,” according to the executive.
“Together with our existing partners, AustralianSuper and LALV, we are deeply committed to furthering the logistics and distribution landscape in Australia with large-scale, strategic investments, and this land is a rare and valuable opportunity to achieve this”.
AustralianSuper head of Property, Bevan Towning, said the product – ecommerce and distribution hubs close to key infrastructure and population centres – matches its members’ needs.
The deal comes eight months since LOGOS paid Qube $1.67b for a portfolio of land and warehouses at Moorebank.
In July, AustralianSuper became a partner for that investment – contributing $774m.
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