Warehousing and LogisticsLindsay SaundersFri 10 Jul 26
Centennial Plots Logistics Scheme Next to St Marys Intermodal Terminal
Centennial has put its foot on a 6.9ha site next to a Sydney intermodal terminal, revealing plans to develop a logistics and warehousing project with partners Pirrama Capital Partners.
Planned are two industrial warehousing facilities and an eight-lot industrial subdivision next to the St Marys Intermodal Terminal, a last-mile logistics and infrastructure asset in Sydney’s west.
The partners anticipate filing plans this quarter or next and are aiming for practical completion of the scheme in the last quarter of next year.
The site at 55-81 Lee Holm Drive was purchased for $32.15m from a private vendor in a deal brokered by CBRE.
The partners said the deal aims to capitalise on latent demand from tenants seeking new warehousing space ranging from 3500 to 12,000sq m, 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 $27 million target.
Centennial head of capital Alex Edwards said the development of the new St Marys Interlink Logistics Estate “offers ... a clear exit strategy by delivering differentiated product into an already established and expanding industrial and logistics precinct”.
Chief executive Paul Ford said Centennial had intended with Interlink “for a quick sell down of the industrial lots that command premium street frontages on Lee Holm Drive”.
“Demand for industrial subdivisions particularly in the smaller lot category is intensifying, and it’s a sector we’re looking very closely at,” he said.
“A pre-sales and leasing campaign will begin 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.
“We’re confident of outperforming the estate’s forecast value of $102 million.”
Pirrama Capital Partners was founded by industrial development and equity funds specialists Jonathan Herb and David Ruston, who have collectively transacted and developed $3.5 billion of industrial projects.
Ruston said PCP’s business strategy was 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”.
“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,” he said.
Centennial is a prolific property investment management group focusing on the industrial and logistics, office, retail and boutique residential sectors, and holds a portfolio of 63 assets with more than $2.7 billion under management.
