LOGOS and Frasers Property have expanded their presence in Sydney’s west with key leasing deals in industrial property estates.
In March LOGOS added to its development pipeline with the purchase of sites in the industrial hubs of Larapinta in Queensland and Erskine Park in NSW, which have a total end value of about $60 million.
An artist’s impression of LOGOS’ Erskine Park Logistics Estate. Photo: Supplied
The group will now develop a purpose-built warehouse and office logistics facility at the LOGOS Erskine Park Logistics Estate, on behalf of Visa Global Logistics.
The deals reflect the increasing demand for industrial properties due to the increase in online shopping that needs places for storage and easy distribution to consumers.
Steinhoff International Holdings has almost doubled the size of its warehouse facilities at Horsley Drive Business Park. Photo: Supplied
The Erskine Park Logistics Estate is a three-hectare prime development site in the established logistics precinct of Erskine Park in central western Sydney. The site occupies a prime position with dual street frontages to John Morphett Place and Lenore Drive.
Visa has pre-committed to an initial lease term of 12 years and will occupy a 6000-square-metre warehouse and office facility with adjacent property of 18,000 sq m.
The facility is anticipated for completion in July 2018. Visa was founded in 1982 and is one of Australia’s largest privately owned international freight forwarding companies.
Visa picked the site as the road network is critical to its operations, which involve transporting high volumes of cargo containers from Port Botany.
LOGOS’ joint managing directors Trent Iliffe and John Marsh said the business was “pleased to have secured the entire estate within a few months to Visa, and it provides access to Port Botany for the efficient movement of cargo containers.”
LOGOS Australia Investment Venture is a partnership established in 2016 between LOGOS and one of its main shareholders, Ivanhoe Cambridge.
The lease transaction was brokered by Marcel Elias, director of LJ Hooker Commercial Silverwater, who said logistics operators were seeking premises that would create greater efficiencies in the short and long term.
At Wetherill Park, Frasers Property Australia has seen furniture retailer Steinhoff International Holdings double the size of its warehouse facilities in the Horsley Drive Business Park.
The company has secured a further 8900 sq m over a seven-year period, which takes its total new purpose-built warehouse and office space to 18,869 sq m, with an end value of $34 million for the total asset.
Ian Barter, general manager commercial and industrial northern region for Frasers Property Australia, said Horsley Drive Business Park had become very popular with furniture retailers.
“We have now secured four in the park, including Nick Scali, Vivin Imports, Royal Comfort Bedding and Select-O-Pedic. The rapidly expanding property sector has helped drive demand for additional warehouse space from the domestic trade-related products sector,” Mr Barter said.
“Horsley Drive Business Park provided the perfect strategic location for Steinhoff to consolidate its expanding operations. It made smart business sense to co-locate two of its distribution operations to one central location.”