Logos, KKR and Mubadala Investment have bought industrial development sites in Sydney and Melbourne with a combined end value of $640 million.
The partnership acquired a 21.5-hectare greenfield site at Augusta Street in Sydney’s Huntingwood and a 7.8ha infill site at Radford Road in the Melbourne suburb of Reservoir.
Huntingwood is located in Sydney’s central west, offering access to existing amenity, the M4 Motorway, Great Western Highway and other major road infrastructure.
The Reservoir site is positioned in a central ‘last mile’ location in Melbourne’s inner north, some 13km north of the Melbourne CBD and with access to the Western Ring Road, Hume Freeway and Tullamarine Freeway.
The sale prices were not disclosed, however the consortium reportedly paid close to $240 million for the assets.
The consortium plans to develop the sites into prime multi-unit logistics estates that are expected to benefit from their proximity to local key infrastructure, government investment, and growing customer demand.
“The Huntingwood site is one of the largest remaining industrial zoned land holdings in central-west Sydney capable of delivering a large-scale prime-grade logistic estate,” Logos Head of Australia and New Zealand Darren Searle said.
“With strong connectivity to key transport infrastructure, The Estate will be able to support the increasing demand from e-commerce, transport and logistics customers looking to service Western Sydney’s growing residential population.”
“At the Reservoir site we will be delivering a prime-grade Estate which will benefit from its infill location, flight to quality from local occupiers and speed to income through a timely and efficient development programme,” Logos General Manager Development Victoria Myron Poobalasingam said.
The Huntingwood property was brokered on-market via Gavin Bishop, Sean Thompson and David Hall of Colliers International and Chris O’Brien, Jason Edge and Cameron Grier of CBRE, while the Reservoir property off-market via Brent Glassford and Marco Sandrin of Fitzroy’s.
The purchases follow the partnership’s initial acquisition of an 18.2ha prime development site in Brisbane in April last year.
The deal comes after Centuria Industrial REIT acquired a portfolio of six urban industrial assets located across Melbourne, Sydney and Brisbane worth a combined end-value of $132.4 million last month.
The REIT also purchased a portfolio of four industrial properties across Sydney, Melbourne and Brisbane for $129.4 million last November.
Other recent industrial deals include Stockland’s acquisition of two logistics sites in Sydney’s southwest for $128.5 million and LBP Developments’ sale of a prime industrial development site in Revesby to a private developer for $16.3 million.
There have also been some significant industrial portfolio deals such as Blackstone’s purchase of GIC’s 49% stake in the Dexus Australian Logistics Trust for about $2.1 billion last month and Blackstone’s $3.76 billion Milestone industrial portfolio sale last year.