Property fund manager Charter Hall has invested $35 million on behalf of two funds to acquire a six-hectare site in Sydney’s west to develop a logistics hub.
The centre, to be named Compass Logistics Estate, will comprise a 32,000sq m logistics warehouse and 1250sq m of office space, and will have the capacity to be wholly leased or divided and customised to suit two tenants.
The estate will form part of the Sydney western growth corridor, with the state government pledging $72.7 billion of infrastructure throughout the next four years, including $16.8 billion on the WestConnex tunnel project and $5.3 billion on the Western Sydney Airport.
Charter Hall’s unlisted funds’ Compass Logistics Estate, Eastern Creek, Sydney. supplied
The project will be undertaken as a joint venture between the $3 billion wholesale Charter Hall Prime Industrial Fund (CPIF) and the $1.5 billion wholesale Core Logistics Partnership (CLP). The acquisition is in line with the funds’ strategy to maximise existing land bank value via ‘prime’ investment product, creating new build-to-hold assets close to critical infrastructure along the east coast of Australia.
In July CPIF and CLP partnered to each acquire a 50 per cent share in a 61,400sq m Coles-leased distribution centre in Sydney’s south-west at Smeaton Grange, situated on a strategic 16.7-hectare site.
Following an oversubscribed $600 million equity raising, CPIF has been an active participant in delivering new purpose-built industrial facilities and strategically acquiring assets. Once the full deployment of investment capacity from the equity raise is complete, CPIF funds under management will rise to $4 billion.
Savills Australia’s Michael Brislane and Mick Ferreri along with Knight Frank have been appointed to market the project.
“We anticipate strong competition for this development, based on the pent-up demand from major industrial tenants wanting to get a foothold in the Sydney growth corridor,” Mr Brislane said.