- Centennial and boutique industrial developer Pirrama Capital Partners to develop a 6.87ha freehold site at 55-81 Lee Holm Drive, St Marys in Sydney’s west
- Site acquired for $32.15m | forecast end value of $102m | prime position adjacent to St Marys Intermodal Terminal
- Staged sell-down planned after developing eight-lot subdivision (3,000- 8,000 sqm) and industrial warehouses (12,225 sqm GLA)
- Closed-end fund “Centennial Interlink Logistics Estate Trust” raised $27m | Targeting ~25 per cent IRR over 30-month term
- Vendor: private | Selling agent: CBRE John Micallef, Jason Edge and Cameron Grier
Centennial in a joint venture with boutique industrial developer, Pirrama Capital Partners (PCP) are set to transform a 6.9ha landholding at St Marys into two new industrial warehousing facilities and an eight-lot industrial subdivision immediately adjacent to the St Marys Intermodal Terminal in Sydney’s west.
The property was purchased for $32.15m from a private vendor and brokered by CBRE.
The deal is aiming to capitalise on latent demand from tenants seeking new warehousing space ranging from 3,500 to 12,000 sqm, and purchasers seeking small lot land parcels in established precincts benefitting from major supply chain infrastructure.
Centennial has funded the acquisition through a single, closed end syndicate “Centennial Interlink Logistics Estate Trust” which closed at its $27m target.
“The flexibility in exit options for investors was a key driver in the fund successfully raising capital in such a short period of time,” said Centennial’s Head of Capital, Alex Edwards.
“The development of our new St Marys Interlink Logistics Estate offers investors extremely attractive total returns and a clear exit strategy by delivering differentiated product into an already established and expanding industrial and logistics precinct.”
Centennial’s CEO, Paul Ford added: “This is a strategic development services partnership with PCP, and we’re looking forward to an ongoing relationship with them … they’ve developed some tremendous projects, particularly in Sydney’s west.
“With Interlink, we intend for a quick sell down of the industrial lots that command premium street frontages on Lee Holm Drive,” Mr Ford said. “Demand for industrial subdivisions particularly in the smaller lot category is intensifying, and it’s a sector we’re looking very closely at.
“A pre-sales and leasing campaign will commence prior to construction start, with sell-down of the eight-lot subdivision and, the built form anticipated, within three to six months after practical completion,” Mr Ford said, adding: “We’re confident in outperforming the estate’s forecast value of $102m.”
Pirrama Capital Partners, founded by industrial development and equity funds specialists Jonathan Herb and David Ruston, who have collectively transacted and developed $3.5bn of industrial projects, said they were delighted to be appointed by Centennial to deliver Interlink Logistics Estate.
David Ruston said: “PCP’s business strategy is to source development opportunities, leverage experience and sector expertise and de-risk projects by finding value in overlooked sites, all of which, are common threads shared by Centennial.
“PCP and Centennial are strongly aligned to the industrial property sector and as a development partner, we’ll leverage the St Marys site’s prime western location by tapping into our own strong connections, particularly in Sydney’s western industrial sector.”
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