LOGOS to develop $200m industrial estate at Villawood

LOGOS to develop $200m industrial estate at Villawood

22 February 2019

Industrial property company LOGOS has unveiled a deal to buy a 15.3 hectare infill development site in the Sydney suburb of Villawood from Toll Group and transform it into a $200 million industrial and logistics estate, says The Australian.

The 15.3-hectare infill site on Miller Road has strong connections to Sydney’s transport network, with five freeway entry points within 10 kilometres along with access to the South Sydney freight railway line.

The acquisition includes a partial leaseback to Toll over a portion of the site, with LOGOS to undertake upgrading works across the existing facilities.

The company plans to redevelop the remaining 11.3 hectares of the site into a logistics and intermodal estate on a speculative basis with an estimated completion value of about $200 million.

“The Villawood property acquisition is a new strategic infill development opportunity that will greatly benefit both intermodal and logistics operators,” LOGOS Australia and New Zealand head Darren Searle said.

“To capitalise on the property’s strategic location and the future infrastructure development in the area, we will look to develop intermodal and logistic facilities to service the strong demand we are seeing from our existing and new tenants in this area for modern, high quality facilities,” he said.

The Macquarie-backed investment house led by Trent Iliffe and John Marsh has grown rapidly, assembling $4.2 billion in equity commitments to 15 ventures in Australia and abroad. Its pipeline is nearing $10 billion in end value for assets under management, notes the AFR.

The total development pipeline in the Australian market is around $2 billion.

The Villawood property was bought by the LOGOS Australia Investment Venture, a partnership set up in late 2016 between LOGOS and Ivanhoe Cambridge to invest in prime logistics assets across Australia.

LOGOS has been expanding into the markets of China, Singapore and Indonesia. In 2017 it moved into the Indian market, joining a local asset manager for a $US400 million equity raising to invest there.

Last week, The Sydney Morning Herald featured a JLL report that more than $21 billion of investment was targeting Australia’s booming industrial and logistics.

The key drivers of demand are the expanding e-commerce sector, a greater focus on agile supply chain networks, the growing food and grocery sector and increased investment in technology and automation sector.