An Asia Pacific consortium has nabbed a 14ha parcel of land from Qantas at Mascot as part of a $800-million-plus deal.
Asia Pacific logistics company Logos, with the financial backing of Abu Dhabi Investment Authority, has partnered with Australian Super to acquire the site to build a state-of-the-art four-level logistics, e-commerce and last-mile logistics hub.
The deal also included a long-term sale and lease back of Qantas’ 21,795sq m distribution centre and a further three development sites, totalling 98,645sq m, next to Sydney Kingsford Smith Airport Precinct.
Logos head of Australia and New Zealand Darren Searle said it was one of the last available scalable logistics and commercial development sites in South Sydney.
“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,” Searle said.
“The site is a key freight gateway for the airport and offers unparalleled connectivity as a critical link to supply chains around the country.
“With our existing partners AustralianSuper and Logos Australia Logistics Venture, 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 ... our plans will create thousands of jobs for the local community.”
The consortium plans to develop the site to an end value of $2 billion, and has also entered discussions with Qantas about 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.
In July Logos and Australia Super acquired the Moorebank Logistics Park for $1.7 billion as part of a joint consortium venture.
AustralianSuper head of property Bevan Towning said the acquisition highlighted 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,” Towning said.
The transaction increases LOGOS’ assets under management in Australia and New Zealand to about $13 billion.
The transaction is due to be completed in December. It is expected the consortium will then ffile plans for the development of the last-mile logistics hub.