The 15.3 ha property at 246 Miller Road, Villawood, will be partially leased back to Toll and is due to settle in late 2019. LOGOS will undertake upgrade works across the existing facilities.

The group also intends to speculatively develop the remaining 11.3 ha into a logistics and intermodal estate with an estimated end value of about $200 million.

The site has access to Sydney’s transport network including the south Sydney freight railway line and five freeway entry points within 10km.

LOGOS’ Head of Australia and New Zealand, Darren Searle, said there was a robust demand for logistics centres in the area.

“The Villawood property acquisition is a new strategic infill development opportunity that will greatly benefit both intermodal and logistics operators,” he said.

“To capitalise on the property’s strategic location and the future infrastructure development in the area, we will look to develop intermodal and logistic facilities to service the strong demand we are seeing from our existing and new tenants in this area for modern, high quality facilities,” he said.

About $80 billion of infrastructure investment is going into western Sydney until 2023, Mr Searle noted, including the construction of the WestConnex and NorthConnex Motorways and upgrades to the area’s existing road systems.

Industrial assets have been a star performer in the commercial property market, thanks largely to the rise of e-commerce and long-term population growth, according to Colliers International’s latest industrial property research.

NSW, Victoria and Queensland are the top states for offshore migrants and are the focus for industrial property investors. NSW accounted for the largest proportion of sales volumes in this sector at about 42 percent, with Victoria and Queensland taking up 26 percent and 16 percent respectively.

Sydney remains to be the most tightly held industrial market in the country, the research found.

Mr Seale added that the purchase will also strengthen LOGOS’ relationship with Toll. The group has developed three facilities for the global logistics provider.

The Villawood property is the sixth purchase by a partnership between LOGOS and Ivanhoé Cambridge - the LOGOS Australia Investment Venture - which was established in late 2016 to invest in prime logistics assets across Australia.

LOGOS has a development pipeline in Australia and New Zealand of $2 billion, with assets and projects in NSW, Victoria, Western Australia, Queensland and Auckland.

Cover Image: An artist’s impression of the $200-million partial redevelopment of the Villawood site. (Image: LOGOS)