This article is from the Australian Property Journal archive
LOGOS has acquired a prized large landholding in Melbourne’s western industrial hub of Truganina, and plans to develop a 160,000 sqm logistics estate with an end value of up to $250 million.
The 27.5-hectare site 285 Palmers Road was purchased for $28 million from petrol and property tycoon Nick Adrianakos, as the group looks to take advantage of growing demand for logistics and warehouse space.
“This is a strategic acquisition for the group as it will be one of the few sites currently able to deliver leasing pre-commitments, particularly over 50,000sqm, in Melbourne’s west,” Logos joint managing director Trent Iliffe said.
“The Melbourne logistics market has performed strongly over the past number of years and we are confident that the diminishing supply of available zoned and serviced land in Melbourne’s west will start to dictate stronger rental growth for this area going forward.
“We also expect this will impact this market’s ability to deliver large scale warehouse projects that many companies, such as e-commerce users, will require to support their business growth over the short to medium-term,” Iliffe said.
Selling agent, Pierre Ghougassian of Cushman & Wakefield, said the site is one of the last large zoned parcels of land in Melbourne’s west, and is perfectly positioned close to major arterials to attract key tenants.
“As demand for new warehouses starts to increase over the next two to three years, LOGOS will be in a great position to capitalise in what is starting to become a very tight market.”
Truganina’s facilities typically cater for large-format logistics operators, and including FMCG and supermarket operators, e-commerce operators and 3PL groups.
In April, Charter Hall secured a 58-hectare landholding in Truganina from Singaporean investors for a $330 million logistics park development. The site adjoins its existing Drystone estate, which has some 180,000 sqm of logistics space. Tenants include Woolworths, Couriers Please, Target and The Reject Shop.
On the other side of Melbourne, Logos recently sold a Dandenong South warehouse and distribution facility occupied by a subsidiary of Pact Group Holdings to Johannesburg-listed Investec Australian Property Fund for $19.45 million.
The 36-42 Hydrive Close property traded at a 6.3% initial yield, with 7.1 years remaining on the lease term and annual rental increases of the greater of 3.5% and CPI. It has a gross lettable area of 14,365 sqm with 677 sqm of office space.
Australian Property Journal
