LOGOS parks Volvo at its Prestons estate
Industrial developer and investor LOGOS will develop a $35 million purpose-built facility for the local arm of Swedish-based Volvo Group on its Prestons Logistics Estate in Sydney’s south-west.
The new facility will take up 29,300 square metres, including hard stand areas and heavy vehicle workshop bays, which Volvo will use to service its major truck brands in Australia.
Volvo has committed to an initial 10-year lease term on the facility, with construction expected to be completed in the third quarter of 2018.
“The estate is an ideal location for Volvo Group Australia to house our new, larger, multi-branded truck facility and workshop given the proximity to key arterial motorways,” said Volvo Group Australia’s president Peter Voorhoeve.
The pre-lease is the second major development at the 25-hectare site that LOGOS acquired in mid-2016. Since then two warehouse distribution facilities have been built for Toll Transport, spanning more than 65,000 sq m.
When fully developed, the industrial estate will hold real estate worth as much as $300 million.
“We have been actively working with a number of occupiers to pre-lease the remaining developable lettable area of the estate and are on schedule to have the estate fully leased, developed and operational by mid-2019,” joint managing director Trent Iliffe said.
The Prestons project is one of several development sites held in the LOGOS Australia Logistics Venture, which was set up in late 2014.
Backed by Macquarie, LOGOS now has a $1.9 billion pipeline across NSW, Victoria, Western Australia and Queensland.
In February, LOGOS, led by Mr Iliffe and joint managing director John Marsh, launched a new $500 million fund, backed by a single investor, to acquire logistics facilities in the local market.
LOGOS has $4 billion of equity commitments to 14 ventures in five regions. It is targeting assets under management of more than $9 billion.
In 2016, Ivanhoe Cambridge, the real estate unit of the Caisse de depot et placement du Quebec, acquired a major stake in LOGOS Property Group alongside Macquarie Capital and LOGOS itself.
It is a busy player. In March it snapped up a 4.4-hectare warehouse industrial site in Sydney’s south for $72.4 million in an off-market sale and this week it sold a Dandenong South facility in Melbourne to an Investec fund for $19.45 million.
