Asia-Pacific logistics specialist LOGOS has entered into binding arrangements to acquire a 100% freehold interest in a significant parcel of land from Qantas Airways Limited near Sydney Airport for A$802 million ($595 million).
LOGOS said the purchase was backed by the Abu Dhabi Investment Authority via the LOGOS Australia Logistics Venture (LALV) as well as the pension fund AustralianSuper.
The acquisition further expands LOGOS’ growing development pipeline across Australia including its shared portfolio of logistics and last-mile investments made jointly by LOGOS and AustralianSuper.
In July 2021, they also acquired the Moorebank Logistics Park for A$1.7 billion.
The transaction increases LOGOS’ assets under management in Australia and New Zealand to A$13 billion ($9.7 billion).
Upon development completion, the land is forecast to have an end value in excess of $2 billion.
The consortium and Qantas have also entered into discussions regarding potential future development options for the sites, including the creation of a dedicated precinct for Qantas, as well as the sale of an additional 3ha of land that adjoins some of the lots being sold.
“To acquire this site at Mascot is a rare opportunity to further develop market-leading e-commerce, distribution and a commercial hub between Sydney ports and the ultimate distribution destinations in Australia’s main gateway city. The site is a key freight gateway for the airport and offers unparalleled connectivity as a critical link to supply chains around the country,” said LOGOS Head of Australia & New Zealand, Darren Searle said.
LALV is a partnership established in late 2014 between LOGOS and the Abu Dhabi Investment Authority to acquire and develop prime, logistics estates across Australia. Since its establishment, LALV has developed a logistics portfolio valued at A$2.7 billion. LOGOS shareholders include ARA Asset Management, Ivanhoé Cambridge, and LOGOS founders. In April, LOGOS announced the launch of a new venture with private equity giant KKR and Abu Dhabi state investor Mubadala Investment Company to acquire and develop logistics facilities across Australia.