LOGOS snaps up Sigma assets in $172m TCorp deal
LOGOS Property has formed a new partnership with the NSW government’s financial management and investment arm, TCorp, in the acquisition of $172 million worth of assets from Sigma Healthcare.
It is under a sale and leaseback agreement for 15 years, with options to extend the lease, and comprises two distribution centres from Sigma Healthcare in Kemps Creek, in Sydney’s west, and Berrinba, Queensland.
LOGOS’ head of Australia and New Zealand, Darren Searle, said the partnership with TCorp is focused on assembling a premium core logistics portfolio underpinned with “high quality, well-leased assets” in strategic locations across Australia.
Mr Searle said LOGOS has identified the pharmaceutical market as one of growth and “we will look to further expand into the sector over the coming years”.
“LOGOS is focused on building a strong portfolio of modern, high-quality logistics assets that service the core logistics sectors of e-commerce, food and cold storage,” Mr Searle said.
“The Sigma properties are an important addition to our customer relationships and are in line with our strategy, as the assets are directly linked to pharmaceutical fulfilment which has continued to perform and shown resilience, especially in the current market.”
The Kemps Creek and Berrinba facilities have a combined 56,400 square metres spread over 9.8 hectares and were designed and purpose-built for Sigma in 2016 and 2019 respectively, with the pharmaceutical provider investing $60 million in automation and sustainability initiatives.
With the latest deals, LOGOS’ Asia Pacific portfolio now comprises more than 100 logistics assets and operations across nine countries with a completed value of $13.8 billion.
It comes as the industrial property sector is navigating the global pandemic through a less rocky time than the retail and office markets. This is due to the rise in online shopping as more consumers are working from home.
In the latest CBRE report, it says while demand has risen for some sites, such as cold storage for food outlets, it has been mixed for other sectors.
The report says uncertainty remains elevated but businesses still need to plan for the future.
“In the case of some logistics operators, demand will accelerate as consumers become more comfortable with online shopping and more able to stay at home to receive these deliveries,” the report says.
Overall, average super prime industrial rents were flat for the second quarter to June 30 at an average $108 per sq m. This was the same for the super prime sector, with rents compressed by about 5 basis points, when compared to the same time last year.
Goodman Group, the Australian-based industrial real estate conglomerate, with an extensive international portfolio, is considered the sector’s bellwether and reports its full year results on Thursday.
UBS analysts are expecting a full year 2021 guidance of between 6 per cent and 9 per cent in earnings growth and development work in progress of about $5 billion and total returns from funds/partnership of about 15 per cent which will drive incremental performance fees in future periods.
