LOGOS expands $250m Marsden Park industrial estate
LOGOS Property is developing a 13,000sq m Logistics Facility for LF Logistics at its Marsden Park Logistics Estate, Sydney.

LOGOS expands $250m Marsden Park industrial estate

LOGOS Property has cemented its partnership with the Asian giant LF Logistics, developing a new operational site at the $250 million logistics park in Sydney’s west.

The plans will see the development of a 13,000 square metre purpose-built logistics facility for LF Logistics, which will add to the 102,197-square-metre facility LOGOS provided for the group at its Wujiang FOHO eCommerce Hub Logistics Centre in China.

LOGOS has started development of the Marsden Park Logistics Estate inclusive of a multi-level mezzanine. LF Logistics has committed to a long-term lease on the facility, which is scheduled for completion in August 2020.

It has already opened Stage 1 of the estate, which is home to global produce distributors, Valleyfresh and a 12,515-square-metre facility for eStore Logistics, Australia’s largest third-party logistics provider. On completion, it will comprise over 100,000 square metres of prime logistics space.

The deal comes amid speculation that LOGOS was a front runner to buy two pharmaceutical distribution centres in Sydney and Brisbane being sold by Sigma Healthcare, with a price tag of about $160 million. LOGOS declined to comment.

LOGOS head of Australia and New Zealand Darren Searle said a key focus for the business is on supporting customers’ growth across the region.

“Marsden Park Logistics Estate offers tenants with excellent transport access to both the M7 and M4, enabling them to service greater Sydney and further afield – a key requirement given the continued growth in eCommerce,” Mr Searle said.

It will be the first Australian foray for LF Logistics which intends to use it as a springboard for further expansion.

“This new facility marks a strong start for our Australian operations as we build a greater presence and network across the country. Our new Australian operations is backed by our extensive logistics experience across a range of industries in Asia,” LF Logistics’ head of Australia Greg Amos said.

LF Logistics partnered with property and supply chain firm TM Insight on the operational design and procurement of the new facility. TM Insight will also act as the project manager on behalf of LF Logistics.

Colliers International’s managing director industrial Malcom Tyson said there has been noticeable shift in demand for industrial property towards defensive occupiers over the past three months, including food and beverage retailers, eCommerce groups, transport and logistics providers, data centres and cold storage occupiers

He said COVID-19 has forced industrial occupiers to focus on supply chain management as they look to become more resilient to future events.

“Not only has COVID-19 changed the investment landscape, it has reshaped how industrial occupiers go about their business with an increased focus on supply chain management,” Mr Tyson said.

“With almost half of industrial occupiers we surveyed suggesting COVID-19 has impacted their revenue, leasing activity has slowed and a large number of occupiers who were previously in the market for new or expansionary space have since placed their decisions on hold.

Colliers anticipates that rents are expected to stagnate across most industrial markets over the next twelve months as landlords instead choose to increase incentives to secure tenants.

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