High-profile businessmen David Gonski, former Allianz Australian chairman John Curtis and arts philanthropist Simon Mordant have made a profit flipping a Bunnings warehouse site to Charter Hall for $70 million in a sought-after industrial precinct in south Sydney.
Operating under South Central Sydney Pty Ltd, the entity owned the 1.9 hectare Alexandria site at 520-530 Gardeners Road, valued at about $16 million in 2015.
The Charter Hall managed Core Logistics Partnership (CLP) picked up the Bunnings-leased asset in an off-market buy.
Bunnings has four years remaining on its lease of the property, located on a 1.9-hectare site in the tightly-held Alexandria/Mascot industrial and logistics precinct.
City of Sydney applications shows minor alterations to the site were made in 2017 while under the syndicate's ownership.
Also known as “Mr Networks”, Gonski this year retired as ANZ Bank chairman. Mordant is also a former ABC board member and businessman.
Charter Hall announced it has negotiated a surrender package with Bunnings who no longer need the facility.
CLP fund manager Simon Greig said the acquisition forms part of CLP’s strategy to replenish its development land-bank and grow its Sydney portfolio.
“The property provides excellent redevelopment options including the ability to develop a high-profile logistics or last-mile facility under the current zoning.
“South Sydney is one of the most sought-after industrial precincts in Australia given the access to major transport hubs, the Sydney CBD, port, airport and surrounding densified residential precincts.
“It will capitalise on strong demand for industrial and logistics facilities in the South Sydney area”
Just last month Charter Hall scooped up a Bunnings portfolio, spanning six warehouses, with partners VFMC, Telstra Super and CHC, in an off-market deal for $353 million.
The $2 billion Charter Hall Logistics Partnership was introduced to the Alexandria site by Josh Charles of One Commercial.
Bunnings has operated its warehouse store on the site for 20 years.
Charter Hall chief executive David Harrison said the group will continue with its 13-year strategy to expand its market share in the prime logistics sector.
“This off-market acquisition and the relationship with Bunnings has allowed us to access a fantastic high profile corner site with multiple development options.
“We now own an industrial and logistics portfolio exceeding $11 billion leased to more than 140 tenant customers, which combined with one of the largest pre-leased development pipelines in Australia exceeding $1.5 billion.”
The property is located on the corner of Gardeners Road and Bourke Road about six kilometres south of Sydney CBD.