Brookfield Asset Management has announced it has exchanged contracts to sell its recently completed super prime grade Connect Central Sydney Logistics Estate at Villawood, Sydney, to Gateway Capital Urban Logistics Partnership, an investment vehicle between Ontario Teachers’ Pension Plan, an Asian Sovereign Wealth Fund and Gateway Capital.

The new development, which achieved practical completion last year, is prominently located on a 12.6-hectare site at 2 Christina Road, Villawood. It has a total NLA of more than 69,000sqm across 12 individual buildings with areas ranging from 2,000 to 18,000sqm. 

The sought-after estate targets small and medium-sized businesses seeking last-mile storage facilities and is 75 per cent leased to tenants including Kerry Logistics, Honest to Goodness, Scope Joinery, Ricky Richards, FJT Logistics, Seima, Austway and Euro Car Parts.

Brookfield has been building its logistics portfolio as part of a strategic move into alternative sectors supported by strong market fundamentals. For logistics, this includes the growth trajectory of e-commerce, medium-term rental growth and a scarcity of last-mile facilities in key locations.

Ruban Kaneshamoorthy, Brookfield Co-Head of Australia Real Estate, said: “There continues to be strong underlying demand from investors for high-quality logistics assets in eastern seaboard locations that are close to major infrastructure and road networks. Connect Central Sydney Logistics Estate was developed to a super prime specification, which has attracted overwhelming interest from logistics tenants.

“Logistics continues to be a cornerstone of our Australian real estate portfolio and we remain focused on doubling the size of our exposure during the next 12 months. We have a strong pipeline of opportunities that we are currently exploring.”

Brookfield has unparalleled pedigree when it comes to logistics. With a global industrial portfolio worth US$26 billion, its holdings span 17 million square metres across five continents, making it one of the most active investors in the logistics real estate sector. The transaction is subject to customary regulatory approvals and is expected to close in Q1.

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Brookfield’s Australian logistics portfolio grows to A$1.25 billion | The Industrialist