Partial leaseback on strategic space in southern Sydney
Logistics real estate firm Logos has exchanged contracts to acquire a 15.3 hectare infill development site at Villawood in Sydney.
The deal with Toll Group included a partial sale and leaseback agreement. The acquisition is due to settle late this calendar year.
At 246 Miller Road, Villawood, the property has five freeway entry points within 10km and existing access to the freight railway line.
The deal sees Logos undertake upgrade works across their existing facilities, with the firm to re-develop the remaining 11.3ha of the site into a logistics and intermodal estate on a speculative basis with an estimated on completion value of about $200 million.
Read about Logos’ agreement with IPS Logistics, here
“The Villawood property acquisition is a new strategic infill development opportunity that will greatly benefit both intermodal and logistics operators,” Logos head of Australia and New Zealand Darren Searle says.
“To capitalise on the property’s strategic location and the future infrastructure development in the area, we will look to develop intermodal and logistic facilities to service the strong demand we are seeing from our existing and new tenants in this area for modern, high quality facilities.”
Logos notes the NSW government is investing about “$80 billion in infrastructure across western Sydney over the next four years, including the construction of the WestConnex and NorthConnex Motorways and upgrades to the area’s existing road systems under the $3.6 billion Western Sydney Infrastructure Plan”.
For Logos, the acquisition strengthens its relationship with Toll, having developed already three facilities for the global logistics provider.
“We are pleased to be working with Toll on this strategic acquisition and look forward to enhancing their existing facilities for them within this this key industrial market,” Searle says.