Logistics players ride last-mile boom with portfolio offers
Logos has launched a $250m turnkey industrial estate in Truganina.
Asian warehouse powerhouse ESR is set to become the latest player to capitalise on the last-mile logistics boom, with a venture it has with China Merchants Capital Investment putting a portfolio on the block that could sell for more than $225m.
And in another major play, an investor is being offered the chance to acquire a bespoke complex in Melbourne to be developed by logistics specialist Logos.
The moves come as big institutions look to snap up a series of industrial properties. They see the area as one of the few property sectors with good prospects. A $300m portfolio of warehouses in Brisbane and Perth being sold by Singaporean group CapitaLand is to be split up, with property groups Charter Hall, Cadence (backed by private equity firm KKR), and Irongate chasing the portfolio.
Middle Eastern sovereign fund ADIA this year put a $3bn portfolio of 10 prime logistics assets into play. Manager Logos is engaging with parties on recapitalising up to a 50 per cent stake in the existing fund.
Others are offering up large-scale individual assets. Logos has launched a $250m turnkey industrial estate in the Melbourne industrial suburb of Truganina, giving buyers the chance to acquire a purpose-built industrial facility.
JLL’s Ben Hegerty, Peter Blade, Joel Scully and James Jorgensen are handling the sale of Troups Road Logistics Estate at 435-503 Mt Atkinson Rd, Truganina. The turnkey site gives prospective buyers a chance to work alongside Logos in designing customised industrial facilities. Spanning 20 hectares, the property can accommodate a 125,000sq m project but may also be carved up.
ESR is selling four years after it struck the mandate with China Merchants.
The mandate – known as the ESR Australia Logistics Trust – was seeded with $175m worth of ESR balance sheet assets in Australia and aimed to grow to $350m.
The fund was seeded by 11 ESR assets, in line with the company’s capital recycling strategy to transfer assets into funds and investment vehicles it runs.
ESR Australia chief executive Phil Pearce said at the time the move was the first step in a strategy of releasing capital from its balance sheet to fund and accelerate future developments, but declined to comment on the latest move.
CBRE is handling the sale of the eight-strong eastern seaboard portfolio, with sites in core infill logistics locations in Sydney, Melbourne and Brisbane. The portfolio spins off a net passing income of $12.4m and has a short lease term of three years, allowing a buyer to capitalise on dramatically higher market rents.
