Industrial developer Logos Property has added to its $9 billion portfolio after signing a deal with the country’s largest e-commerce fulfilment company for a $25 million warehouse in Sydney.
The developer also raised $14.15 million from the sale of its Pine Road, Yennora site.
The 8,800-square metre site in Sydney’s Yennora was sold through CBRE who said the development potential of this property was a “key driver underpinning the sale”. The building achieved a square metre rate of $1,595.
The property attracted 10 offers before being snapped up by a private owner-occupier.
The sale comes as Logos launched a $500 million fund to invest in core and core-plus properties. The strategy of the Logos Australia Logistics Portfolio is focused on acquiring and owning high-quality core and core plus logistics facilities in prime industrial markets, predominantly along Australia’s eastern seaboard.
Related reading: Logos Acquires $72.4m Banksmeadow Warehouse
eStore Logistics is set to increase its distribution network after brokering a deal with Logos for a $25 million warehouse.
The online retailer will lease a 12,515sq m warehouse in Marsden Park in Sydney’s outer north-west on a five-year deal.
This new facility will add to eStore’s current 50,000sq m footprint, and significantly increase eStore’s order fulfilment capabilities. eStore currently fulfils up to 45,000 orders a day.
Their current clients include Kogan.com, Temple and Webster, Hairhouse Warehouse, Patagonia, Dick Smith and Essendon Football Club.
“This expansion highlights our rapid growth, driven by our market leading proprietary IT and omni-channel fulfilment service and solutions,” eStore Logistics managing director Leigh Williams said.
eStore partnered with property and supply chain consultancy TM Insight to optimise the operational layout of the facility.
“We designed a facility that maximised storage density [and] allowed for approximately 30 per cent of the warehouse footprint to be allocated for product staging and returns," TM Insight director Travis Erridge said.
"It is pivotal that sufficient footprint is designated to product staging and returns, as it is an inherent challenge in the e-commerce landscape."
The new eStore warehouse will form part of a 20.4-hectare logistics estate in Hollingworth Road being developed by Logos Property.
Logos acquired the property for $40 million in 2016 when the developer and investor bought it from a local farmer.
