Logos to build western Sydney distribution centre
Macquarie Capital-backed property funds manager Logos has struck two major deals in Australia and China as it bulks up its $2 billion operation.
Locally, the group struck a pre-lease deal with Toll Group to build a retail distribution centre at the Prestons Logistics Estate in western Sydney.
The 32,000sqm distribution centre is being undertaken in collaboration with apparel retailer Specialty Fashion Group, and is one of the country’s first designed for the e-commerce market.
“Our aim at Toll is to connect people and products, and we look forward to working with Specialty Fashion Group to enable a fast, efficient and cost-effective supply chain for its customers,” Toll managing director Brian Kruger says.
CBRE’s Jason Edge is believed to have handled the leasing deal and the facility is expected to be finished next October.
Although concerns have emerged about a slowdown in parts of China, Logos believes these markets will experience strong economic growth and have a shortage of investment-grade logistics assets
Logos is working closely with Toll and last week struck a $70 million deal with the company over a facility in the Melbourne suburb of Altona North.
In China, global heavyweights Canada’s Ivanhoe Cambridge and US-based CBRE Global Investment Partners have committed to investing in the Logos China Logistics Venture.
Like Macquarie Capital, Ivanhoe Cambridge has an equity investment in the Logos business, and the investment bank also acted as adviser on the deal.
The fund is the second Chinese logistics real estate vehicle set up by Logos for the pair and it will own and develop about $US400 million of modern logistics properties in Shanghai and neighbouring cities.
Although concerns have emerged about a slowdown in parts of China, Logos believes these markets will experience strong economic growth and have a shortage of investment-grade logistics assets.
CBRE Global Investment Partners managing director, Asia Pacific, Adrian Baker, says Logos has established an attractive pipeline of logistics assets to acquire and develop in and around Shanghai.
This article originally appeared on www.theaustralian.com.au/property.