LOGOS and Partners Group complete final sale of Yennora Site yielding a total of $129m for the entire property

Media
Tuesday 12th March 2019

LOGOS and global private markets investment manager, Partners Group are pleased to announce they have completed the final sale of the successful staged sell down of their reposition and subdivision at Yennora for $49 million, yielding a total of $129 million since the first sale in 2016.

The final 8.8 hectare lot with improvements is located in the heart of Yennora, one of Western Sydney’s most tightly held industrial markets. The property benefits from close proximity to the Yennora station and several major arterial roads, including the Cumberland Highway and M4 Motorway, and is surrounded by a number of industrial developments.

LOGOS and Partners Group, acting on behalf of its clients, acquired the 32 hectare englobo property on a sale and leaseback in 2015 for $47 million with a strategy to subdivide, reposition and sell down the land and improvements over a four year period. The original property was previously occupied by a large aluminium rolled products company and erected on the site were 12 main building constructions that date back to the 1960s.

LOGOS Fund Manager, David Timso, said: “Yennora presented a unique opportunity to acquire a large infill property holding with a sustained cashflow while we worked through multiple repositioning strategies. We are pleased to have successfully transformed this asset to deliver outstanding risk adjusted returns through a disciplined approach of active management”.

The two firms undertook complex repositioning of the property which included retaining and redeveloping some of the existing buildings to be completed in three master lot stages, and then further subdivided into 12 smaller lots. Stage 1 comprised a 9.8 hectare site with four existing buildings; Stage 2 a 12.1 hectare site with various existing buildings and vacant land areas; and Stage 3 a 25,000sqm part refurbished building with ancillary land on a 8.8 hectare site.

Darren Searle, LOGOS’ Head of Australia and New Zealand, said: “Due to its proximity to the Yennora station, the property had the potential to be earmarked for a masterplanned rezoning. However, given the strength of the industrial market and owner occupier demand, driven off the back of increasing industrial land values, we saw that the value of the property in the short term remained as an industrial precinct”.

Bastian Wolff, Partners Group’s Managing Director and Head of Asia Pacific Private Real Estate said: “We are extremely pleased with the outcome for Yennora, which has been a very successful investment for our clients. The project has demonstrated Partners Group’s strategy of acquiring a large, infill logistics site, well-positioned to benefit from strong local demand and generating solid returns through value creation”.

CBRE’s Elijah Shakir and Jason Edge negotiated the various sales on behalf of LOGOS and Partners Group.

Mr Shakir commented: “The scarcity of land in Western Sydney has caused land rates in Yennora to increase over 30% since the first transaction took place, and the lack of opportunities for owner occupier to acquire properties meant that this offering would be highly desirable given its proximity to infrastructure”.