Logistics focused property giant LOGOS has snapped up another major investment in Melbourne’s west.
Following an off-market deal with the vendor, Goodman, LOGOS has entered into a heads of agreement to acquire a 48,770 square metre warehouse under construction within Truganina’s ConnectWest Industrial Estate.
Upon completion within 12 months, the property, 30 Logistics Drive, will be leased to Amart Furniture for 10 years.
When Goodman announced it secured Amart Furniture as an occupant last month, it attached a $65 million end value to the “purpose built” investment.
LOGOS said the 8.5 hectare Truganina property benefits from direct access to Melbourne’s key arterial road networks including the Princes Highway, West Gate Freeway and Western Ring Road.
“The Melbourne logistics market continues to perform strongly and we are pleased to be able to strengthen our foothold in this strategic market,” LOGOS head of Australia and New Zealand, former Toll Group property development boss, Darren Searle said, in this statement.
The Logistics Drive deal comes 10 months after LOGOS paid the Adrianakos family $28 million for a 27.5 hectare industrial development site also in Truganina.
LOGOS is planning to build a $250 million business park, the Truganina Logistics Estate, on this 285 Palmers Road block.
At the time of purchase, it described the land as “strategic” being one of the few in Melbourne’s west able to deliver large industrial pre-commitments for buildings of greater than 50,000 sqm.
Last August, LOGOS paid US-based fund manager Invesco $119 million for a near-new 77,000 sqm distribution centre, leased to Kmart, at 2 Banfield Court, Truganina.
“LOGOS’ Melbourne portfolio now stands at circa 350,000 sqm with an additional 27 hectares of development land at our Truganina Logistics Estate,” Mr Searle said. “We are a strong advocate of the benefits that western Melbourne provides Victorian and Australian supply chains and are confident we will see strong rental and tenant demand over the coming years in these areas as a result of the diminishing supply of available zoned and serviced land”.
Truganina includes facilities for a number of large format logistics operators, including FMCG/supermarket operators, e-commerce operators and 3PL groups, the company said.
LOGOS’ Australian portfolio spans New South Wales, Victoria, Queensland and Western Australia.
The Sydney-based investor, which targets logistics occupiers, has $4.2 billion of equity commitments within 15 ventures.
Last year, it entered the Indian real estate market after previously expanding in China, Indonesia and Singapore.
Ivanhoe Cambridge, one of Canada’s largest institutional fund managers, acquired a $2 billion stake in the LOGOS Property Group three years ago. Macquarie Capital is another shareholder.
Today we reported that Frasers Property Australia had secured Vida XL subsidiary HB Commerce as an occupier at its Maker Place asset, also in Truganina. Frasers Property Australia acquired Maker Place last year mid-construction.