This article is from the Australian Property Journal archive
LOGOS, through its Abu Dhabi Investment Authority (ADIA)-backed mandate, has picked up a 26.7-hectare landholding in Sydney’s Eastern Creek from Sargents Charity for $180 million, where it plans to develop a $500 million logistics estate.
The multi-tenanted estate in the western Sydney industrial hub will offer over 95,000 sqm of gross lettable area.
Logos made the purchase through the Logos Australian Logistics Venture (LALV), to which ADIA committed fresh equity this year. LALV was announced in August as the developer of a $100 million purpose-built Qantas pilot training centre in southern Sydney’s St Peters, adjacent to the 13.8 hectares of land that LALV acquired last year from Qantas from $802 million.
Its newest acquisition is on Archbold Road in Eastern Creek is within one of Sydney’s key industrial suburbs that is experiencing increasing demand from food and beverage, e-commerce, and logistics occupiers, while the site offers direct access to Sydney’s arterial road network.
“As an estate developer of scale, this new Eastern Creek logistics estate will provide customers with medium to longer-term flexibility for growth in this key strategic location,” said Logos head of Australia and New Zealand, Darren Searle.
“We are excited to be growing LALV’s development pipeline into the strategic central western Sydney logistics market of Eastern Creek with LOGOS’ broader Sydney logistics portfolio now covering south, south west, north west, central west and Moorebank,” he said, where Logos and its partners last year invested $1.7 billion into the country’s largest intermodal freight facility.
The off-market was brokered by Savills director of industrial and logistics, Ray Trimboli, who said, “There is significant pent-up demand in the market, particularly for prime industrial land in popular industrial locations such as Eastern Creek which offers unrivalled access to Greater Western Sydney”.
Industrial vacancies in the outer north west precinct of Sydney currently average 0.3%, according to CBRE, and Savills data shows that prime net face rents in the west have increased by 30% since 2019 and, over the last decade, by 51%.
ESG initiatives at the future Eastern Creek estate will include maximising rooftop solar opportunities with a minimum system capacity of 700kW and 3.6 hectares of land dedicated for bush regeneration and revegetation, and the estate will target a 5 Star Green Star rating.
The vendor, Sargents Charity, is linked with pie maker Sargents and donates to hospitals, research programs, schools and community centres.
The deal comes the same week as ISPT, over in Melbourne, has reportedly bought a 62-hectare site in the south east suburb of Dandenong South for $300 million, with plans to deliver an industrial hub worth $1 billion.
