US-Based Cabot Pays $135m for Sydney Logistics Debut

A major US-based investor, developer and logistics operation has expanded its Australian operations, adding its first Sydney asset.

Cabot Properties, which owns and operates properties in the US, Europe, and the Asia-Pacific, has acquired a newly built 19,819sq m logistics asset in Sydney’s Eastern Suburbs.

It picked up the property from LaSalle Investment Management for $136.6 million.

The asset, at 42-52 Raymond Avenue, Matraville, 14km south of the Sydney CBD, is the firm’s first acquisition in Sydney and was “aligned with its strategy to invest in infill industrial real estate in top global logistics markets”, the company said.

“Among the first institutional grade multi-story logistics developments in Australia, 42-52 Raymond Avenue is a Class A, two-storey, ramp-up logistics facility consisting of four units ranging in size from 4640 to 5109 square metres,” Cabot said.

“The development was built to Four Star Green Star standards, with sustainability features that include a 300kW solar PV system, energy monitoring systems, a rainwater recycling system, and an EV charging station.”

Cabot Properties Investments Asia-Pacific managing director Sally Box said that multi-storey warehouses, an established product type across Asia and an emerging one in the Australian landscape, were attractive for many reasons.

▲ The warehouse is 14km south of the Sydney CBD. Image: Nearmap

“Among the most important is the increased density, which maximises land use to enhance sustainability and increase storage capacity, ultimately supporting greater distribution capabilities.”

The property is near major transportation arteries, including the Eastern Distributor, Southern Cross Drive, M5 Motorway, and the new WestConnex M8 Motorway, as well as Sydney Airport and Port Botany.

The development was delivered by LaSalle Investment Management, with Hale Capital as development partner and Vaughan Constructions as the appointed builder. The transaction was handled by Colliers International’s Gavin Bishop, Sean Thomson, Michael Crombie, and Trent Gallagher via an expressions-of-interest campaign.

Cabot’s Australian assets include a $130-million estate at Campbellfield, and projects in the western industrial hub of Truganina, both in Melbourne, as well as projects in the Victorian capital’s south-eastern suburbs.

The international private equity real estate firm was founded in 1986 and has invested more than $15 billion in logistics real estate. It is headquartered in Boston with offices in Atlanta, Chicago, Dallas, Los Angeles, Amsterdam, London, Sydney, Munich and Tokyo.