Consortium Settles $2.5bn in Logistics Acquisitions

A consortium led by logistics property giant Logos and the country’s largest super fund, Australian Super, has closed the year by settling two acquisitions worth a combined $2.47 billion.

The consortium, which includes the Abu Dhabi Investment Authority, has purchased 13.8ha of prime land at Mascot near Sydney Airport from airline Qantas for $802 million.

The consortium now plans to execute a long-term development plan and build two state-of-the-art distribution centres totalling 82,000sq m to service customers seeking logistics facilities close to air freight, and a business park development site spanning 16,000 square metres.

The consortium will also pick up the Qantas distribution centre on a 39,000sq m site, offered as a 10-year sale and leaseback.

Logos head of Australia Darren Searle said the consortium was thrilled to settle on the “rare” and high-value Qantas site, which offered “unparalleled connectivity” as a critical link to supply chains around the country.

“With our partners AustralianSuper and the Abu Dhabi Investment Authority we look forward to activating our plans to develop a leading logistics estate on the site, improving the e-commerce and distribution opportunities in Sydney and creating thousands of jobs for the community,” Searle said.

It has also settled on the $1.67-billion acquisition of Qube’s 243ha Moorebank Logistics Park—Australia’s largest freight infrastructure project—in south-west Sydney.

The deal, which was struck in July, has been subject to various approvals, including the consent of Moorebank Intermodal Company and the Foreign Investment Review Board.

The consortium will pay $1.36 billion on financial close for the site’s warehousing and property components and about another $312 million on a deferred basis, subject to completion of the first stage of an interstate rail terminal, which is due to be operating in 2024.

The acquisition follows the announcement in July of AustralianSuper’s acquisition of a 40 per cent interest, worth $774 million, in the logistics park alongside Logos.

Logos hopes the joint development model will help further improve the connectivity of the estate to interstate rail, enhancing the site appeal for warehouse tenants and rail freight owners alike.

The Moorebank freight hub is a huge project—equal in size to Sydney's CBD—including warehouse construction, leases, rail infrastructure and an import-export terminal.

It has the potential to hold about 850,000sq m of warehouse space and has a direct rail link to Port Botany.

The arrangement extends Logos exposure within the infrastructure sector, and partnerships with sector leaders.

Logos will act as Moorebank’s investment and development manager while listed infrastructure fund Qube Holdings will retain control of the hub’s rail terminals.

“The settlement of both the MLP and Qantas transactions further expands our shared portfolio of logistics and last-mile investments made jointly with AustralianSuper,” Searle said.

“We are proud to work together with such established partners to further our shared commitment to advancing the logistics and distribution landscape in Australia.”