ADIA-Backed LOGOS Platform and AustralianSuper Acquire Qantas Property for Logistics Development
Posted on 10/16/2021
The LOGOS Australia Logistics Venture (LALV) is backed by the Abu Dhabi Investment Authority (ADIA). LALV and AustralianSuper entered into binding arrangements to acquire a 100% freehold interest in a significant parcel of land from Qantas Airways Limited near Sydney Airport for A$ 802 million. The land is a substantial land holding of 13.8ha in Mascot, in a location in immediate proximity to Sydney Kingsford Smith Airport, Port Botany, WestConnex and the M5/M8 Motorway. The site will be redeveloped into a 4-level ramp up, logistics, e-commerce and last mile logistics hub.
For Qantas, the sale of the largely underdeveloped land follows a three-month expression of interest process, which resulted in 18 bids from a range of Australian and international syndicates.
The Consortium will advance these plans on completion of the transaction, anticipated in December 2021. Upon development completion, the property is forecast to have an end value in excess of A$ 2 billion. The Consortium and Qantas have also entered into discussions regarding potential future development options for the sites, including the creation of a dedicated precinct for Qantas, as well as the sale of an additional 3ha of land that adjoins some of the lots being sold.
The transaction increases LOGOS’ assets under management in Australia and New Zealand to around A$ 13 billion.
LOGOS has extensive experience operating across 10 Asia Pacific countries.
Recent last mile investments made jointly by LOGOS and AustralianSuper, with their most recent joint consortium venture acquiring the Moorebank Logistics Park for A$1.7 billion in July 2021. Ivanhoé Cambridge, TCorp (NSW Treasury Corporation) and AXA IM Alts, participated in the Moorebank deal.
ADIA
LALV is a partnership established in late 2014 between LOGOS and the Abu Dhabi Investment Authority to acquire and develop prime, logistics estates across Australia. Since establishment, LALV has developed a high quality, modern logistics portfolio valued at A$ 2.7 billion billion.
LOGOS was founded in Australia in 2010 as a provider of management services in the logistics real estate sector. MIRA (Macquarie) invested in the business in 2014 in line with its strategy to invest in and grow specialist real estate operators. MIRA’s business plan was to transition LOGOS from a service provider into a fully integrated developer and asset manager and to expand the business across Asia-Pacific. MIRA exited its investment in 2020 as part of ARA Asset Management acquiring a controlling interest in the business. ARA Asset Management Limited is a majority shareholder of LOGOS, which operates as ARA’s logistics real estate platform.
