Leading Asia-Pacific logistics specialist, LOGOS, backed by the Abu Dhabi Investment Authority via the LOGOS Australia Logistics Venture (“LALV”), together with its partner, AustralianSuper (together, “the Consortium”), have entered into binding arrangements to acquire a 100% freehold interest in a significant parcel of land from Qantas Airways Limited near Sydney Airport for $802 million.

The land (“the Property or the Site”) is a substantial land holding of 13.8ha in Mascot, in a highly desirable and strategic location in immediate proximity to Sydney Kingsford Smith Airport, Port Botany, WestConnex and the M5/M8 Motorway.

The Property represents one of the last available scalable logistics and commercial development sites in the coveted South Sydney market, adding another valuable asset to the portfolios of strategic logistic assets held by LOGOS, LALV and AustralianSuper.

The sale – introduced by Neil Murray, Rebecca Ngan and Dwight Hillier of Colliers’ Strategic Advisory team and facilitated by Colliers’ Michael Crombie, Gavin Bishop, Trent Gallagher, and Sean Thomson – represented a once in a lifetime investment opportunity.

“The International Expressions of Interest generated significant domestic and offshore attention and will be noted as the most prominent sales campaigns of 2021, with in excess of $8 billion of unsatisfied capital left to place within the Australia industrial sector from the unsuccessful bidders,” Mr Crombie said.

“The campaign attracted insatiable interest from institutional investors and developers recognising the scarcity of replaceable opportunities of genuine scale to redevelop within the tightly held Mascot precinct.”

The transaction increases LOGOS’ assets under management in Australia and New Zealand to ~A$13 billion.

Key points of the announcement include:

• The land represents one of the last available scalable logistics and commercial development sites in the coveted South Sydney market
• The transaction increases LOGOS’ assets under management in ANZ to ~A$13 billion, and is anticipated for completion in December 2021
• LOGOS will develop the site into a state of the art, four-level ramp up logistics, e-commerce and last mile logistics hub, drawing on it’s expertise from developments in over 10 Asia Pacific countries
• Once developed, LOGOS’ vision is that the site will substantially enhance the connectivity of Sydney airport and provide tenant customers with unparalleled access to major population catchments and transport infrastructure
• Once developed, the property is forecast to have an end value in excess of $2 billion
• The LOGOS Consortium and Qantas have also entered into discussions regarding potential future development options for the sites, including the creation of a dedicated precinct for Qantas, as well as the sale of an additional 3ha of land that adjoins some of the lots being sold
• This announcement is off the back of LOGOS and AustralianSuper’s acquisition of Moorebank Logistics Park in July for $1.7billion (alongside consortium partners)

The Consortium will draw on LOGOS’ experience across 10 Asia Pacific countries to redevelop the Site into a state of the art, four-level ramp up, logistics, e-commerce and last mile logistics hub, which will substantially enhance the connectivity of Sydney airport and provide tenant customers with unparalleled access to major population catchments and transport infrastructure. The Consortium will advance these plans on completion of the transaction, anticipated in December 2021. Upon development completion, the Property is forecast to have an end value in excess of $2 billion.

The Consortium and Qantas have also entered into discussions regarding potential future development options for the sites, including the creation of a dedicated precinct for Qantas, as well as the sale of an additional 3ha of land that adjoins some of the lots being sold.

The acquisition further expands LOGOS’ growing development pipeline across Australia including its shared portfolio of logistics and last mile investments made jointly by LOGOS and AustralianSuper, with their most recent joint consortium venture1 acquiring the Moorebank Logistics Park for A$1.7 billion in July 2021.

LOGOS Head of Australia & New Zealand, Darren Searle said: “To acquire this site at Mascot is a rare opportunity to further develop a market-leading e-commerce, distribution and commercial hub between Sydney ports and the ultimate distribution destinations in Australia’s main gateway city. The site is a key freight gateway for the airport and offers unparalleled connectivity as a critical link to supply chains around the country.

“Together with our existing partners AustralianSuper and LALV, we are deeply committed to furthering the logistics and distribution landscape in Australia with large-scale, strategic investments, and this land is a rare and valuable opportunity to achieve this. In developing a leading logistics estate, we are proud to announce that our plans will create thousands of jobs for the local community,” Mr Searle said.

AustralianSuper Head of Property, Bevan Towning, said this was a great opportunity for the Fund to partner with LOGOS to access a high-quality investment and highlights the Fund’s appetite to make major direct investments into significant long-term property development opportunities.

“Growing AustralianSuper’s investment in major logistics assets that are focussed on the growing demand for e-commerce and distribution hubs close to key infrastructure and population centres will match member needs for strong, sustainable long-term returns.”

Alongside consortium partners Ivanhoé Cambridge, TCorp (NSW Treasury Corporation) and AXA IM Alts.

LALV is a partnership established in late 2014 between LOGOS and the Abu Dhabi Investment Authority to acquire and develop prime, logistics estates across Australia. Since establishment, LALV has developed a high quality, modern logistics portfolio valued at A$2.7b billion.

To request further information about the transaction please contact the Colliers selling agents via the below contact details.