Logistics investor Logos has acquired 13.8 hectares of land from Qantas for $802 million in a landmark deal for Australian property.
The deal included a long-term, sale and lease back of Qantas’ 21,795sqm distribution centre, and a further three development sites totalling 98,645sqm, immediately adjacent to Sydney Kingsford Smith Airport Precinct.
Colliers’ Michael Crombe says the International Expressions of Interest generated significant domestic and offshore attention.
“It will be noted as the most prominent sales campaigns of 2021, with in excess of $8 billion of unsatisfied capital left to place within the Australia industrial sector from the unsuccessful bidders,” he says.
“The campaign attracted insatiable interest from institutional investors and developers recognising the scarcity of replaceable opportunities of genuine scale to redevelop within the tightly held Mascot precinct.”
Once fully redeveloped, the expected end value of Logos’ proposed development will extend well beyond $2 billion, making the company one of South Sydney’s largest landlords. Logos intends to develop a world class, multi-level logistics and office park development, changing the landscape of the Mascot precinct.
Gavin Bishop, Colliers Head of Industrial Capital Markets, Australia, says the Australian industrial and logistics market completed its best year on record in the year to June 2021, providing a total return of 23.2 per cent over the period.
“This performance surpassed the previous record set back in late 1988, where the total return measured 23.1per cent. The sector continues to surpass expectations, and the performance spread over the retail and office sectors is at record highs.”
The sale was introduced by Neil Murray, Rebecca Ngan and Dwight Hillier of Colliers’ Strategic Advisory team and facilitated by Colliers’ Michael Crombie, Gavin Bishop, Trent Gallagher, and Sean Thomson.
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