Ivanhoe Cambridge, the real estate unit of the Caisse de depot et placement du Quebec, one of Canada’s leading institutional fund managers, has acquired an infill site north of Melbourne where it has plans for a $230 million industrial hub.
The former Woolworths distribution centre, located at 120 Northcorp Boulevard in Broadmeadows, was purchased for $50.2 million from Growthpoint Properties Australia.
The property will now be redeveloped into a high-quality 120,000sq m logistics park and business hub with construction expected to commence in early 2021.
Ivanhoe said the facility, which will target a 5 Star Green Star rating, will be focused on supporting the core logistics sectors of e-commerce, distribution, food and cold storage with warehouses ranging from 15,000sq m to 50,000 square metres.
“We remain focused on assembling a sizeable portfolio in Sydney and Melbourne, which has shown remarkable resilience through the Covid-19 pandemic,” Ivanhoe Asia Pacific senior vice president George Agethen said.
“We are confident that we will deliver an environmentally leading estate that will meet the demands of our users for the long-term.”
The transaction was brokered by CBRE’s Chris O’Brien and Daniel Eramo with the site acquired by Sydney-headquartered logistics player Logos Property Group on behalf of Ivanhoe.
In 2016, in a move to deepen its presence in the Asia-Pacific region, Ivanhoe acquired a major stake in Logos, outlaying $300 million.
Logos head of Australia and New Zealand Darren Searle said the Broadmeadows acquisition would enable a number of its existing customers to expand into an area which had long experienced limited supply of prime grade logistics assets.
Similarly, the coronavirus crisis has put a brake on investment in retail assets.
Industrial investment hit $1.65 billion in the June quarter, making it the strongest second quarter on record for logistics deals, according to Cushman & Wakefield.
Logos Asia Pacific portfolio currently comprises 100 logistics estates across nine countries with assets under management of approximately $13.8 billion.
Earlier this month, Logos entered the Vietnam logistics market with a $350 million joint venture with an unnamed global institutional investor.
In May, Ivanhoe and Logos partnered with the Canada Pension Plan Investment Board in an $850 million Singapore logistics venture.
In April, Ivanhoe Cambridge and the Netherlands’ Bouwinvest agreed to an $800 joint venture, with Logos targeting projects across China.