Australian property fund manager, Centennial, has acquired a large-scale logistics facility in New South Wales’ St Marys, which it will reconfigure and further develop into a prime, multi-unit logistics estate, with an estimated end value of $65 million.
Brokered off-market by Colliers International’s Gavin Bishop and Sean Thompson, the transaction closes out Centennial’s mid-space focused global investment Fund, CILP 1 – its initial partnership fund with leading global investment firm KKR. The fund now comprises a total of 23 assets covering 206,000sqm of gross floor area. Once repositioned and fully developed, the fund’s assets will have an estimated value of $550 million on completion.
Now known as the Central West Distribution Centre, the site is located less than five kilometres from the Great Western Highway and M4 Motorway. The site is also two kilometres from Pacific National’s St Marys Freight Hub, which has now commenced operations. St Marys is also in close proximity to Sydney’s major distribution centres, Amazon’s Fulfillment Centre and the future Western Sydney International (Nancy-Bird Walton) Airport, which is on track to begin operations in 2026.
The property currently includes dual entry/exit points and boasts over 1,000sqm of office and amenities, 14,153sqm of high clearance warehouse or manufacturing space.
A significant refurbishment, which will be completed in the first quarter of 2023, will include a new hardstand and an extension to the warehouse.
According to Paul Ford, Centennial’s Executive Director and CEO Industrial & Logistics, the purchase represents a very compelling opportunity.
“Given the asset’s highly land-constrained central urban industrial location, and the fact that the property is being acquired with quality improvements at, or below, land value, it immediately met several of our acquisition criteria.
“We recognised the significant functionality, optionality and value-add potential this asset provides, and this transaction allows us to continue executing our strategy of acquiring modern and highly functional mid-space assets with flexible improvements in urban locations, at close to or at land value, that will enhance investor returns.
“We have already had strong longer-term leasing enquiry, due to the site’s proximity to the Great Western Highway, M4 and M7 motorways, and the ability to leverage the main road location and expansion design to offer a wide variety of space options.
“This purchase expands Centennial Industrial & Logistics’ $1 billion investment portfolio of 61 assets in Victoria, New South Wales, South Australia and Queensland,” added Mr Ford.
Centennial is now focused on undertaking the facility’s significant upgrade, with Colliers International appointed to market the property for lease, with the site’s dedicated hardstand making it ideal for warehousing, transport and logistics operators.