Mitre 10 swoops on ex-rival outlet
Mitre 10 has leased part of a prominent ex-Masters outlet, now a logistics investment, abutting the St Marys Leagues Stadium, in Sydney’s outer west.
The Metcash controlled hardware group has committed to 4114 square metres at 243 Forrester Road, North St Marys, for an initial seven years.
Following an earlier deal for 10,866 sqm to Pegasus Media and Logistics, the 3.2 hectare asset is full.
It has also surged in value – a Centennial spokesperson said – to $55 million.
The manager paid HMC Capital $35.6m two years ago.
Prior to the surprise sale, HMC was planning to replace the block with a multi-level health and wellness precinct, with a childcare centre, gym and retail.
Repurposed, refilled
HMC was responsible for repurposing the ex-Masters, at the V-intersection of Ropes Crossing Boulevard.
It also rebranded the property the Central West Distribution Centre and committed Cisco to a short-term lease before offering it for sale.
Centennial bought it for the KKR-backed Centennial Industrial Logistics Portfolio (story continues below).
Under its control, the warehouse has been extended – from 13,000 sqm – including with a two level office.
Rooftop solar panels and a rainwater harvesting system were installed too while parking and container storage areas were created.
Following the lease deals, the weighted average lease expiry is 6.8 years.
“A main factor in acquiring the site was its potential to be upgraded and expanded, creating two premium mid-size tenancies to capitalise on the area’s low infill vacancy rates, currently sitting at around 0.5 percent,” Centennial head of Institutional Funds, Alex Edwards, said.
“Highlighting the strength of the local market is the fact we’ve also achieved an uplift in the asset’s value…by c50pc since we purchased the site…for a relatively small outlay” he added.
“Adding to this, St Marys has been identified by the state government as being a strategic centre with its Strategic Growth Area mapping, placing it front and centre of some of the nation’s largest transport infrastructure projects including the Sydney Metro, linking Greater Western Sydney to the new airport, and Pacific National’s St Marys containerised rail freight hub running to Port Botany…two kilometres from Centennial’s distribution centre,” according to the executive.
North St Marys is about 47 kilometres from the CBD.
It is 10km east of Penrith.
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