Stockland today announced it has entered into contracts to acquire two logistics sites in the inner south west industrial precinct of Padstow for $128.5 million, further bolstering its $3 billion plus Logistics pipeline.
The sites are located at 110 Gow Street, Padstow and 122 Canterbury Road, Bankstown and provide a combined 5.5 hectares, ideally situated in ‘last mile’ logistics corridor in proximity to almost three million people within a 30 minute drive, access to Sydney Airport and major road networks connecting to all of metropolitan Sydney.
Stockland Commercial Property CEO, Louise Mason, said: “These acquisitions align with our strategy to increase our exposure to premium logistics sites along the eastern seaboard. Demand for logistics leasing, particularly from e-commerce businesses, continues to be strong.
“These acquisitions further increase our weighting in one of the most land constrained and attractive logistics markets in Sydney’s south west with immediate rental income and redevelopment potential.”
Both sites are fully leased with a WALE (weighted average lease expiry) of 2.2 years.
Stockland Executive General Manager of Workplace & Logistics, Tony D’Addona, said “Demand and supply fundamentals for quality logistics assets along the eastern seaboard remain strong, and we have either recently completed or commenced more than $2001 million of new developments in these markets.
“With a shortage of premium warehouse and distribution sites available in Sydney adjacent to key transport corridors, these sites provide excellent access to the Sydney CBD, the airport, Port Botany, the Mascot/Alexandria interchange, the M5 Motorway and will benefit from the WestConnex project when it is completed in 2023.
“Stockland is committed to producing high quality logistics assets and Sydney’s inner south west logistics precinct is perfectly positioned for rejuvenation and new investment product.”
“This is a landmark deal for the region especially after the record-breaking Qantas sale in nearby Mascot. With that site being earmarked for future multi-level logistics facilities, other sites like this one in Padstow with similar development potential are in high demand,” Mr Gallagher said.
“The site is fully leased providing a net yield of 4.28 per cent yet has huge future scope for redevelopment as the existing leases expire soon. It is also situated close to major transport links like the WestConnex, M8 Motorway and M5 Motorway.”
Ben Fairfax from Formus Property was also the private vendor’s advisor on the transaction.
Stockland expects to settle on 14 December 2021.