Fast fashion retailer H&M has committed to the final facility at homegrown logistics platform Logos’ $330-million industrial estate in Sydney’s west.
H&M and COS have committed to a five-year initial lease on the facility at the Marsden Park Logistics Estate, which is scheduled for completion in August.
The global fashion retailer will take the seventh and final facility at the industrial park, a recently completed 27,300sq m purpose-built complex that will service its Australian retail store network.
Logos head of Australia and New Zealand Darren Searle said the estate had now been fully leased, just two years after breaking ground.
“It is a great milestone to have leased more than 100,000sq m of space at Marsden Park Logistics Estate and we’re very pleased to be welcoming H&M Group to the estate,” he said.
Searle said H&M had been drawn to the distribution centre’s sustainability credentials and features, such as a 250kW solar system, rainwater harvesting and LED lighting among other initiatives to obtain a 5-Star Green Star rating.
The entire 100,000sq m estate, on a 21ha site, holds eight tenancies including Hong Kong-based global logistics service provider LF Logistics, which has a 13,000sq m facility.
The estate also includes a purpose-built 6200sq m facility for global produce distributors Valleyfresh; a 12,515sq m facility for eStore, Australia’s largest third-party logistics provider; a 3600sq m facility for veterinary wholesale distributor Lyppard; and a circa 16,000sq m warehouse and office facility for Orrcon Steel.
The Marsden Park Logistics Estate is held in the Logos Australia Logistics Venture (LALV), established in 2014 by LOGOS and its capital partners.
Logos’ Australian and New Zealand portfolio includes assets and developments in NSW, Victoria, Western Australia, Queensland and Auckland, with a completed value of $5.1 billion.
The group recently teamed up with private equity powerhouse KKR and an Abu Dhabi sovereign wealth fund to establish an industrial development fund with more than $1 billion in investment capacity.
Already the fund has been seeded with an industrial property acquired from Fletcher Building, near the interchange of the Ipswich and Logan motorways at Wacol, 23km south-west of the Brisbane CBD.
Logos plans to redevelop the site into a master-planned logistics estate on both a pre-lease and speculative basis.
Fully developed, the estate will comprise as much as 95,000sq m, with an estimated value of more than $200 million.
Demand for industrial and logistics space is expected to surge again across 2021 as institutional and private investors look to further re-weight their portfolios to an asset class which delivered double-digit total returns during the pandemic.
According to Colliers International, the boom in e-commerce is being driven by homebound consumers expecting same-day delivery of goods ordered online.
Colliers said based on recent findings, for every $1 billion spent on online sales, about 85,000sq m of warehouse space is needed.
According to NAB, online retail spending surged from $6.7 billion in 2010 to $44.2 billion last year.