LOGOS announces Moorebank Intermodal Precinct development update, including new tenant leases across ~50,000sqm GLA and completion of $620m warehousing

Media
Monday 6th November 2023

Today’s development update for MIP announces:

• A new lease taken by Maersk for 27,029sqm
• A new lease taken by Sydney Tools for 22,726sqm
• Over 162,000sqm of warehousing due for completion before the end of 2023 valued at $620m
• The installation of ~12,000 solar panels across 31,500sqm of warehousing in the last 18 months, comprising approximately 11% of the total solar infrastructure to be installed by 2030
• The estate is now ~50% leased

Leading Asia-Pacific logistics specialist, LOGOS, has announced an update on its development of Moorebank Intermodal Precinct (“MIP”), Australia’s largest intermodal freight facility, two years after the LOGOS Consortium’s acquisition of the site. This update includes new tenants Maersk and Sydney Tools, the completion of warehouses to end value of $620 million due by end of year, and material installation of solar infrastructure.

LOGOS and its Consortium partners, AustralianSuper, AXA IM Alts, Ivanhoé Cambridge and TCorp (NSW Treasury Corporation) (the “Consortium”), completed the landmark acquisition of the MIP site for $1.67 billion in December 2021, with significant progress made over the last two years. MIP is currently Australia’s largest logistics warehousing and infrastructure development project comprising of approximately 243 hectares of land with up to 850,000sqm in total lettable area, with expected end value of $4.2 billion when complete.

LOGOS Head of ANZ, Darren Searle, said: “We are pleased to have delivered comprehensive progress on the development of MIP within the first two years of the LOGOS Consortium’s ownership. Today’s announcement that Maersk and Sydney Tools will join existing high calibre tenants at the estate including Woolworths, Qube Logistics, Mainfreight and Caesarstone is fantastic, and brings the precinct to ~50% leased already. The tenant commitment and interest in MIP reflects the unique value provided by the site, including connectivity to key freight corridors, market-leading ESG initiatives and technology-led warehouse development.

“The demand for high-quality warehouse space and logistics facilities remains strong, as supply chain operators look to diversify their bases in response to distribution challenges and structural trends accelerated by the pandemic and the growth of e-commerce. We are proud to have made significant progress in MIP’s development alongside some leading ESG initiatives including the installation of Australia’s largest rooftop solar system with Solar Bay and the removal of more than 12,000 container movements from Sydney’s roads – factors which are also important to tenants.”

LOGOS is pleased to announce Maersk and Sydney Tools as MIP’s newest customers. Maersk is a world-leading integrated shipping and logistics company operating globally across 130 countries. In Australia, Maersk is one of the country’s leading container freight companies, simplifying logistics and services for large and small customers with port operations in Sydney, Adelaide, Brisbane, Fremantle and Melbourne. The addition of Maersk bolsters the third-party logistics capability in LOGOS’ tenant mix at MIP.  JLL assisted in the transaction.

Kylie Fraser, Managing Director, Oceania at Maersk, said: “We are excited to join the esteemed list of customers at MIP and partner with LOGOS in Australia. At Maersk, we drive our commitment to providing integrated shipping and logistics solutions to our clients worldwide. This collaboration in Australia’s largest intermodal freight facility will strengthen our position and enable us to serve our customers across diverse business segments with efficiency and reliability. We look forward to leveraging the strategic advantages offered by the project and working closely with partners to deliver sustainable and environmental-friendly solutions to meet the evolving needs of our customers.”

Sydney Tools is a privately-owned Australian wholesale and retail distributor of premium quality industrial tools and accessories, operating a national network across more than 90 locations in NSW, Victoria, Queensland, ACT, NT, WA and SA. Sydney Tools customers cover a broad range of industries including construction, mining, agriculture, and automotive sectors and joins other Australian retailers at the site including Woolworths and Caesarstone. CBRE assisted in the transaction.

Sydney Tools Managing Director, Jason Bey, said: “This new partnership aligns perfectly with our vision for a more sustainable and efficient future. This collaboration with LOGOS will empower Sydney Tools to make a meaningful impact on reducing our carbon footprint while delivering an improved level of service to our customers. The environmentally conscious design of the center complements Sydney Tools’ dedication to reducing its environmental impact and ensuring a more sustainable and efficient supply chain.”

By the end of 2023, the installation of ~12,000 solar panels across 31,500sqm of warehousing will have been completed at MIP, comprising approximately 11% of the total solar infrastructure to be installed by 2030. Once fully operational, the solar micro-grid will be capable of supplying the full energy requirement of the precinct. This renewable energy mandate adds to the LOGOS Consortium’s commitment to reducing the number of trucks on the roads and increasing reliance on sea freight, with the reduction of greenhouse gas emissions when MIP is fully operational saving up to 110,000 tonnes of CO2 per year – the equivalent of taking more than 25,000 cars off the roads yearly. All new warehouse developments are designed for resource efficiency targeting at least a 5-star Green Star rating, in addition to the IS Design & As Built ratings and 5-star Green Star Communities rating targeted for the precinct.

The MIP site is strategically located in Sydney’s South-West industrial precinct at the intersection of several key freight corridors, including proximate access to the M5 motorway, M7 motorway, Hume Highway, and being directly adjacent to Australia’s largest rail intermodal facilities with direct uninterrupted linkage to Port Botany. The Moorebank IMEX intermodal provides occupiers unparalleled operational benefits via its automated port-to-site connectivity driving long-term cost advantages, improved supply chain predictability, and significant ESG benefits.