Logistics deals run hot in Sydney and Melbourne
Logistics property is locking in its status as one 2019’s busiest sectors, with funds managers AMP Capital and LOGOS announcing new deals in Sydney and Melbourne respectively.
AMP Capital says its warehouse facility at Casula’s Crossroads Logistics Centre has been leased to freight delivery company Hunter Express, which supported its decision to speculatively build the property last year.
AMP Capital managing director, office and industrial, Luke Briscoe, says the Crossroads centre had been highly sought-after as it is near two of Sydney’s major roads: the M5 and M7.
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“The strength of this demand and the positive response from our customers gave us the confidence to speculatively develop Building 3,” he says, noting Hunter Express will occupy this property which spans 9455sqm of warehouse and 500s m of office space. It joins other tenants in the estate, including Electrolux, WesTrac, Cosentino and Versiclad.
Hunter Express worked with integrated supply chain, property and project management firm TM Insight to procure the new Casula property.
The Crossroads centre is all but completed, with only one remaining development site comprising 17,655sqm, which is development approved and ready to kick off.
Once the final building is complete, Crossroads, owned by the AMP Capital Diversified Property Fund, will span about 90,000sqm of high-quality warehouse and office space across three separate precincts.
Meanwhile, LOGOS has bought a property in the Melbourne suburb of Truganina in an off-market deal. The group will construct a purpose-built facility, believed to be for A-mart, that will span 48,770sqm, with the retailer taking an initial ten year term. The deal is expected to complete in early 2020.
Sitting at 30 Logistics Drive, the 8.5ha property has direct access to Melbourne’s key arterial road networks, including the Princes Highway, West Gate Freeway and Western Right Road.
LOGOS head of Australia and New Zealand Darren Searle says the Melbourne logistics market continues to perform strongly. The company’s Melbourne portfolio now stands at about 350,000sqm with an additional 27ha of development land at its Truganina Logistics Estate.
Truganina is a well-established industrial suburb, which includes facilities for a number of large format logistics operators and the LOGOS portfolio, in NSW, Victoria, Queensland and WA, has a target end value of more than $4.2 billion.
This article originally appeared on www.theaustralian.com.au/property.
