HomeCo have sold their St Marys development site Centennials’ Build 2 Core Fund backed by KKR for $35.3m.
The deal, which settled on the 15th September, was sold at 75% premium to HomeCo’s book value of $20.2m.
The property at 243 Forrester Rd North St Marys, consists of a 3.1ha site and comprises a former Masters Distribution Centre of 13,071sqm with 357 car parking spaces. HomeCo had intended to convert the property into a Wellness Precinct inclusive of a range of complementary health facilities along with a childcare centre, veterinary clinic and food kiosk. HomeCo obtained development consent to the conversion in December 2021.
The St Marys’ property sits neatly in the growing North Western Sydney market with good access to local population, employment and transport corridors.
Centennial will seek to take advantage of the booming industrial market where land rates and construction costs have substantially risen over the past year as a result of widespread labour and material shortages.
The acquisition price reflects a rate of $2,680/sqm of GFA.
The asset will sit in the Build 2 Core (B2C) Partnership Fund which was launched in March this year with a target fund size of over $650m. The Fund holds three existing assets, including the $39-million Somerton Industrial Park in Victoria, the $30-million Geebung Industrial Park in Queensland, and the $13-million Stapylton Distribution Centre, also in Queensland.
Paul Ford, Centennialâs Executive Director and CEO Industrial & Logistics said âIn setting up B2C, we have looked at the growth in e-commerce and related supply chain shifts to infill or last-mile location demand, increasing land constraints, above-trend occupier demand, building obsolescence and urban renewalâ.
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