LOGOS, together with its capital partners, has purchased a 26.7-hectare vacant land parcel for $180 million from Sargents Charity in an off-market transaction brokered by Ray Trimboli of leading agency Savills.

LOGOS will develop the site into a prime, multi-unit logistics estate with an end value of circa $500 million.

The land is prominently located in Archbold Road, Eastern Creek, has exposure to the M4 motorway, is zoned IN1 General Industrial and is suited to a range of future development uses including logistics and warehousing.

The site will be developed into a multi tenanted A-Grade logistics park.

According to Savills, this off-market transaction is testament to the continued strength of the industrial sector, fuelled by supply chain issues and the growth of on-demand delivery. It highlights the need for inventory to be held closer to customers to meet delivery times.

“There is significant pent-up demand in the market, particularly for prime industrial land in popular industrial locations such as Eastern Creek which offers unrivalled access to Greater Western Sydney,” said Ray Trimboli, Director of Industrial & Logistics, Savills.

Demand for Western Sydney industrial property continues to outstrip supply, with more than 1.5 million square metres in active tenant briefs within the market. Savills Research reveals that prime net face rents in the West have increased by 30% since 2019 and, over the last decade, have risen 51% - more than areas in the Outer South West and South West Sydney.

Despite the recent disruptions to economic recovery, ongoing challenges facing the supply chain, escalating energy and commodity prices, and a surge in inflation, the appetite from households for retail spending remains resilient.

Established in 2000, Sargents Charity, associated with pie manufacturer Sargents, donates to range of beneficiaries, including hospitals, research programs, schools and community centres.

Sargents has extensively developed land in the Minchinbury industrial area which is close to Eastern Creek and to its Colyton factory. In 1997, it constructed the industrial estate in Sargents Road which is now home to a range of businesses, including Woolworths, Aldi, and Startrack.

In common with many domestic food manufacturers, Sargents has faced a range of challenges including, bushfires and floods, escalating costs of meat, ongoing impacts of COVID-19 and changing consumer trends. However, backed by strong real estate assets and with zero debt, Sargents will be constructing a new factory at Lot 5 Archbold Road, Minchinbury as part of its future expansion program.

LOGOS’ Head of Australia and New Zealand, Darren Searle, said: “We are excited to be growing LALV’s development pipeline into the strategic central western Sydney logistics market of Eastern Creek with LOGOS’ broader Sydney logistics portfolio now covering south, south west, north west, central west and Moorebank.

“As an estate developer of scale, this new Eastern Creek logistics estate will provide customers with medium to longer term flexibly for growth in this key strategic location. We look forward to working with our partners and the local council on delivering this new Estate,” he added.

Industrial vacancies in the Outer Northwest Precinct of Sydney currently average 0.3% and substantial landholdings, such as the Archbold Road property, are key in supporting the strong demand for industrial and logistics space with superior access to Sydney’s arterial road network.

To request a sales analysis please contact the selling agent, Ray Trimboli, Director of Industrial & Logistics, Savills, via the below contact details.