Logistics and operations specialist Logos has swooped in on a 27.5 hectare site with grand plans for a $250 million logistics estate in Melbourne’s industrial west.
Logos acquired 285 Palmers Road in Truganina for approximately $28 million and is planning a $250 million logistics estate thanks to a booming industrial sector.
Earlier this year fund manager Charter Hall secured a 58-hectare Truganina industrial site for $55.35 million with plans to develop a $330 million industrial park.
Logos has plans to develop the site, with an estimated total developable GLA of 160,000sq m, into a modern logistics estate comprising a variation of warehouses.
Melbourne's western industrial suburbs made up more than half of the annual take-up of industrial land in 2017.
Logos joint managing director Trent Iliffe said the group is confident diminishing supply of available zoned and serviced land in Melbourne’s west will ensure stronger rental growth moving forward.
“We also expect this will impact this market’s ability to deliver large scale warehouse projects that many companies, such as e-commerce users, will require to support their business growth over the short to medium term,” Iliffe said.
“This is a strategic acquisition for the Group as it will be one of the few sites currently able to deliver leasing pre-commitments, particularly over 50,000sq m, in Melbourne’s west.”
The Truganina acquisition boosts Logos’ Australian portfolio value to $2.6 billion on-completion.
The property, due to settle in late 2018, was purchased from the Adrianakos family. Logos will begin development of the masterplanned industrial estate once securing all necessary development approvals.
The industrial property player, established in 2010, has developments across New South Wales, Victoria, Western Australia and Queensland.