LOGOS seals deal with H&M at the $330m Marsden estate

H&M Group, consisting of the brands H&M and COS, committed to a five-year initial lease for the facility that will service its Australian retail store network.

The deals come as the run of Australian industrial and logistics real estate continues, with significant momentum recorded in both occupier and investment markets.

Luke Crawford, director of research at Colliers, said the sector proved the most resilient asset class in 2020, providing a total return of 13.9 per cent, which was almost three times the rate recorded for office (4.7 per cent) and significantly above the -10.1 per cent recorded for retail.

″⁣The outlook for the sector remains favourable and the outperformance is expected to persist given the strong macro drivers supporting demand,″⁣ Mr Crawford said.

The H&M distribution centre incorporates a wide range of sustainability features including a 250kW solar system, rainwater harvesting and LED lighting. These elements helped the centre obtain a five-star Green Star rating.

Darren Searle, LOGOS head of Australia and New Zealand, said it was a great milestone to have leased more than 100,000 square metres of space at Marsden Park Logistics Estate and to have H&M as a major tenant.

H&M and COS entered the Australian market in 2014, and there are 37 H&M stores and eight COS across the country. COS is a modern, functional fashion brand for women and men.

Mr Searle said LOGOS had $5.1billion of assets under management across Australia and New Zealand (including stabilised facilities and development assets) and was soon to add the Qube Holdings’ $2 billion Moorebank logistics park in Sydney’s south.

In Melbourne, Frasers Property Industrial has secured two 10-year pre-lease deals with Australian caravan manufacturer Crusader Caravans and chassis manufacturer Intel Engineering at its 4Ten Epping industrial estate in Melbourne’s north.

Crusader Caravans and Intel Engineering will occupy adjoining warehouse and office facilities at 4Ten Epping with a net lettable area of 15,010 square metres and 5760 square metres respectively.

A neighbouring standalone 16,972 square metre speculative facility with extensive Cooper Street frontage is also to be developed concurrently. The total end value of the three facilities is estimated at $62 million.

Anthony Maugeri, general manager, southern region for Frasers Property Industrial, said the group was continuing to see strong demand for quality industrial facilities in Melbourne, largely due to the scarcity of developable industrial land and existing leasing opportunities available in the region.