This article is from the Australian Property Journal archive
LOGOS and Partners Group’s repositioning and subdivision of the 32-hectare former Alcoa recycling plant in western Sydney’s Yennora has paid off, netting $129 million from the sell-down just four years after acquiring the asset for $49 million.
The sale of an 8.8-hectare lot has completed the divestment program, and the vendors have benefited from a 30% surge in land rates across the tightly-held suburb rates since the first transaction took place.
Global aluminium producer Alcoa announced the shutdown of the plant in 2014. LOGOS and Partners Group purchased the site in a sale and leaseback deal in 2015, with intentions to retain and redevelop some of the 12 existing 1960s-constructed buildings across three master lot stages, and then further subdivided into 12 smaller lots.
Stage one comprised a 9.8-hectare site with four existing buildings; stage two a 12.1-hectare site with various existing buildings and vacant land areas; and stage three the 8.8-hectare site, comprising a 25,000 sqm part-refurbished building with ancillary land.
In December, Bob Ell’s Leda Holdings paid $8.75 million for a 13,780 sqm parcel as part of the second stage sell-down.
Logos head of Australia and New Zealand, Darren Searle said that due to its proximity to the Yennora station, the property had the potential to be earmarked for a masterplanned rezoning.
“However, given the strength of the industrial market and owner occupier demand, driven off the back of increasing industrial land values, we saw that the value of the property in the short term remained as an industrial precinct.”
CBRE’s Elijah Shakir and Jason Edge negotiated the sales on behalf of LOGOS and Partners Group.
“The scarcity of land in western Sydney has caused land rates in Yennora to increase over 30% since the first transaction took place, and the lack of opportunities for owner occupier to acquire properties meant that this offering would be highly desirable given its proximity to infrastructure.”
LOGOS fund manager, David Timso, said the property presented a unique opportunity to acquire a large infill property holding with a sustained cashflow while working through multiple repositioning strategies.
Australian Property Journal