APAC warehouse platform Logos Property announced late last week that it had purchased a 27.5 hectare industrial site in the western suburbs of Melbourne, with market sources cited in local media indicating that the Sydney-and-Shanghai-based developer had paid A$28 million ($20.9 million) to add the project to its pipeline.
Logos said that intends to start developing the parcel at 285 Palmers Road in Truganina, Victoria into a modern logistics centre with a total gross lettable area of up to 160,000 square metres (1.7 million square feet) after the transaction closes in late 2018.
The developer founded by industrial real estate veterans John Marsh and Trent Iliffe makes the purchase as international logistics builders race to build pan-Asian networks.
Meeting Melbourne’s Logistics Needs
“The Truganina site is an important addition to our logistics property holdings in Melbourne’s west and will allow us to grow with our customers continued demand in this area,” said Iliffe. “This is a strategic acquisition for the Group as it will be one of the few sites currently able to deliver leasing pre-commitments, particularly over 50,000 square meters, in Melbourne’s west.”
Logos sees the new site as an opportunity to serve the distribution needs of Melbourne’s 4.73 million residents via the multiple road connections between the project and Melbourne’s deep sea port, airport and central business district, all of which are less than 30 kilometres distant.
The developer acquired the plot from the family of Nikos Adrianakos, who founded Milemaker Petroleum, and said it plans to begin development as soon as necessary approvals have been obtained.
Building Up Aussie Assets as Rivals Enter the Field
Logos’ latest acquisition allows the developer to boost the value of its properties in Australia to A$2.6 billion, following the closing of the deal. The company was founded in 2010 and now has projects in New South Wales, Western Australia and Queensland, in addition to Victoria.
The Melbourne area deal was announced the same week that Logos’ rival from back in Shanghai, ESR announced its A$102.5 million buyout of Australian real estate heavyweight Charter Hall’s Commercial & Industrial Property Pty Ltd (CIP). That acquisition is set to form the core of the $12 billion warehouse developer’s formal of ESR Australia.
In addition to its projects down under, Logos, which had raised more than $2.8 billion in equity for its warehouse investments by the end of last year, has also established a $800 million India joint venture with Ivanhoe Cambridge and Quadreal. The company also last year set up a $484 million Southeast Asia platform with Ivanhoe and CPPIB.