This article is from the Australian Property Journal archive
CENTENNIAL has targeted Sydney’s west for a multi-unit logistics estate which could end up with a value of $65 million in St Mary’s.
A 31,850sqm site, based at 243 Forrester Road, St Marys was purchased by Centennial for $35.3m but it has the potential to reach $65 million following further develop from the company. The site also has 13,078sqm of gross floor area to offer.
The project is located in Sydney’s Central West industrial precinct with a current vacancy under 0.3% and access to over 2.6 million people within 30 minutes.
Centennial’s executive director and CEO industrial & logistics Paul Ford says that the site provided an opportunity that had to be taken.
“We recognised the significant functionality, optionality and value-add potential this asset provides, and this transaction allows us to continue executing our strategy of acquiring modern and highly functional mid-space assets with flexible improvements in urban locations, at close to or at land value, that will enhance investor returns,” he said.
“This purchase expands Centennial Industrial & Logistics’ $1 billion investment portfolio of 61 assets in Victoria, New South Wales, South Australia and Queensland,” he added.
The deal was brokered off-market by Colliers International’s Gavin Bishop and Sean Thompson. It is the final transaction of out Centennial’s mid-space focused global investment Fund, CILP 1 – its initial partnership fund with leading global investment firm KKR. This fund now comprises a total of 23 assets covering 206,000sqm of gross floor area. Once repositioned and fully developed, the fund’s assets will have an estimated value of $550 million on completion.
The refurbishment of the property will be completed in the first quarter of 2023 with the goal to offer high-quality leases that are best-suited to modern industrial and logistics operators. The property will continue to be marketed for lease with areas from 2,869sqm up to 15,193 sqm.
The property currently contains over 1000 sqm of office space and amenities as well as 14,153 sqm of high clearance warehouse or manufacturing space.
Chrisco Hampers have leased out the site for a short term period prior to the settlement as a result of low vacancy rates across the sector.
