AustralianSuper has partnered with a Logos-led consortium backed by the Abu Dhabi Investment Authority (ADIA) to buy an industrial land adjoining Sydney Airport for A$802m (€513m).

Australia’s flag carrier Qantas is selling the 13.8–hectare lot in the inner Sydney suburb of Mascot to reduce debt.

The site, regarded as one of the last available scalable logistics and commercial development opportunities in the coveted South Sydney market, was originally reported to be valued at around A$500m.

Darren Searle, Logos head of Australia and New Zealand, declined to comment on the premium paid for the land – or the shareholdings of the partners in the deal.

He told IPE Real Assets: “Our investors took a view that we were keen on the real estate and we wanted to execute a deal. We put our best foot forward.

“It is expensive real estate. (But) it is some of the best real estate (in Australia). We intend to maximise the value and will build a multi-storied warehouse around a very intense development to capitalise on the location and give our investors appropriate returns.”

On completion, the logistics complex will have an end value of more than A$2bn.

Searle said part of the transaction included an existing Qantas distribution centre sold on a leaseback basis.

Separately, Searle said, the consortium and Qantas had entered 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 3-hectare land adjoining some of the lots being sold.

AustralianSuper head of property, Bevan Towning, said the fund’s participation in this transaction highlighted its appetite to make major direct investments into significant long-term property development opportunities.

“Growing AustralianSuper’s investment in major logistics assets that are focussed on growing demand for e-commerce and distribution hubs close to key infrastructure and population centres will match member needs for strong, sustainable long-term returns,” said Towning.

Searle said ADIA has been invested with Logos since 2016 as part of the Logos Australia Logistics Venture.

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