Logos Property Pty Ltd has formed a partnership with Australia’s biggest superannuation fund, AustralianSuper Pty Ltd, to develop the Wiri Logistics Estate in South Auckland.
AustralianSuper has taken on a similar change-agent role in London, where it’s become the major backer of the regeneration of King’s Cross.
At Wiri, the partners have added 14ha to the 10ha already bought from Fletcher Concrete & Infrastructure Ltd for the first stage of the estate.
They plan to build 120,000m² of industrial space, transforming the total 24ha into a $500 million prime logistics estate.
The site, fronting Roscommon Rd & Wiri Station Rd, has direct access to State Highway 20 (the South-western Motorway) and is near Ports of Auckland Ltd’s Conlinxx Inland Port.
Logos began siteworks in April for the first building in the estate, a $100 million purpose-built meat processing facility for Hilton Foods NZ Ltd, a subsidiary of UK company Hilton Food Group PLC, which will supply exclusively to Countdown’s North Island supermarkets from mid-2020.
Hilton has committed to a 25-year pre-lease on the 15,700m² facility, its first investment in New Zealand, and will invest up to $50 million for plant & equipment. Logos has just completed a 45,000m² purpose-built food processing & distribution facility for Hilton at its Heathwood logistics estate in Brisbane, and the acquisition of the Wiri site is in line with the group’s strategy of supporting the growth plans of its existing tenants.
Logos is talking to a number of existing & potential new tenants to develop purpose-built opportunities on the site, including large format logistics operators, fast-moving consumer goods, e-commerce operators & third-part logistics (3PL) groups.
Internationally, it has $A4.5 billion of equity commitments to 16 ventures, with a targeted end-value of assets under management of over $A9.8 billion.
Logos’ head of Australia & New Zealand, Darren Searle, said: “AustralianSuper’s investment highlights the increasing strength of the New Zealand industrial & logistics sector, which has seen renewed growth over the past few years on the back of the country’s underlying economic fundamentals, increasing population and, importantly, the rise in e-commerce.”
AustralianSuper looks internationally for investments
AustralianSuper, founded in 1999, is the largest Australian superannuation & pension fund, with 2.3 million members – roughly 1 in 10 Australian workers. It has ACTU union representatives & employer nominees on its board and it’s run entirely for the benefit of members – there are no shareholder dividends.
The fund’s Balanced investment option has returned 10.72%/year over 3 years, 9.76%/year over 10 years and 8.25%/year over 15 years.
Members investing in the Balanced option received an 8.67% return for the June 2019 financial year.
AustralianSuper manages over $A165 billion of members’ retirement savings, and for the financial year just finished it was forecasting an $A16 billion inflow of investment funds, in large part due to the banking royal commission’s impact on for-profit funds, in turn leading to AustralianSuper looking for more offshore outlets for investment.
AustralianSuper head of property Bevan Towning said the Wiri partnership was a great opportunity for the fund to grow its investment footprint in New Zealand and deliver strong, long-term returns for members.
King’s Cross regeneration
King’s Cross is its first direct London investment and one of the largest regeneration projects in Europe, covering 27ha. It’s being developed by King’s Cross Central Limited Partnership.
Work started in 2007 on what was an underused industrial wasteland beside the famous railway station, now being transformed into a new part of the city with 1900 homes ranging from studios to 4-bedroom family homes to supported living for the elderly, shops, offices, galleries, bars, restaurants, schools & the University of the Arts London.
In 2008, Argent, the Government-owned London & Continental Railways and the mail & courier company DHL formed the joint partnership, and in 2015 the Government & DHL sold their stakes to AustralianSuper for $A900 million, taking its share of the project to 67.5%, valued last year at $A1.55 billion.
When complete, the 740,000m² estate will house 7000 residents, 30,000 workers & 5000 students.
Attribution: Logos release & website, AustralianSuper, King’s Cross Central, Google map.