Qantas is expected to raise more than $500 million through the sale of several major Mascot land holdings in South Sydney’s booming industrial precinct.
Investors and developers will compete over the near 14 hectare space for freehold sale or 99-year lease either individually or in-one-line.
The portfolio includes a long-term sale and lease back of Qantas’ distribution centre (DC), positioned on a 38,920 sqm prime industrial land holding.
The DC would provide an income profile for an initial 10-year term with further 2 x 5-year options.
Colliers has been advising Qantas on its property strategy and will manage the one-month expressions of interest campaign which starts on August 2.
Michael Crombie from Colliers says the properties would have a potential development end value of $2 billion.
“Located within the heart of Mascot, immediately adjacent to the Sydney Kingsford Smith Airport Precinct, the development sites totalling 98,645sqm offer an unprecedented opportunity to develop (*STCA) a super core, multi-level industrial and logistics estate and institutional grade mixed use development of commanding scale, and become one of the largest industrial landlords within the South Sydney market,” Michael says.
Qantas has posted a $1.47 billion loss in the first six months of this financial year because of border closures.
Qantas Group chief financial officer Vanessa Hudson says that the money raised from the land sales will be used to pay down debt.
“In the current climate we’re obviously looking more closely at what is core and what is non-core, and the reality is that we don’t need this land for any of our long-term strategic goals,” Vanessa says.
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