AMP Capital will commence the first stage of a $130 million development at Crossroads Logistics Centre, located at Casula in Sydney’s south west.
This follows Cosentino Australia choosing to partner with AMP Capital at the new industrial hub.
Crossroads Logistics Centre is owned by investors in the AMP Capital Diversified Property Fund (ADPF) and once complete will accommodate approximately 79,000 square metres of high quality warehouse and office space across three separate precincts.
Crossroads Logistics Centre is strategically located in the south-west growth precinct and offers unparalleled proximity to major arterial roads, ports, the proposed Moorebank Intermodal Terminal and Sydney and Badgerys Creek airports, with direct access from Sydney’s M5 Motorway. Located next to AMP Capital’s Crossroads Homemaker Centre and also Costco, Crossroads Logistics Centre offers industrial tenants purpose-built facilities to suit their specific needs.
AMP Capital has obtained development approval from Liverpool Council for Precinct A and development applications for Precincts B and C have also been lodged. Prime Constructions, an experienced and highly regarded industrial builder, has been appointed as construction partner. The Cosentino building is targeted for completion in the first quarter of 2017.
ADPF fund manager Kylie O’Connor said this development was consistent with the fund’s investment strategy to maximise fund performance through the development of its existing assets.
“I am very pleased to announce the commencement of this important industrial development which will improve the quality of our portfolio,” Ms O’Connor said.
“Once complete, Crossroads Logistics Centre will become the cornerstone of our industrial and logistics portfolio as we look to deliver superior investment returns for our clients.
“The development of Crossroads Logistics Centre follows the fund’s recent acquisition of a $250 million prime Sydney industrial portfolio, continuing our deliberate strategy to increase exposure to the industrial sector.”
Cosentino Australia is wholly owned by the Cosentino Group, a global family-owned company headquartered in Spain that produces and distributes high-value innovative surfaces for architecture and design. It has committed to a 12,500-square-metre facility to house their Australian distribution centre and
Luke Briscoe, AMP Capital's managing director, office and industrial, said securing a quality tenant such as Cosentino reinforces the appeal of the development, including the strategic location at the crossroads of the M5 and M7, as well as the tailored design of the facility to meet their business needs.
“We welcome Cosentino as a major customer in our portfolio. Crossroads is an exciting development for AMP Capital, our investors and future tenant customers”, Mr Briscoe said.
“With a distinct lack of well-located, serviced industrial land in the west of Sydney, AMP Capital is responding to customer demand for high quality industrial and logistics in the south-west growth precinct.
“We continue to see strong interest in the western Sydney market, driven by an outperforming NSW economy, the migration of logistics businesses from the south Sydney market to the west and the surrounding significant investment in infrastructure. AMP Capital is well placed to respond to this demand within our portfolio at not only our Crossroads development, but our sites at Glendenning, Arndell Park and Huntingwood.”
The increased investment in industrial property comes as AMP Capital continues to strengthen its capability in this sector, having appointed Anna Maras as regional general manager for Industrial Property Management. This follows the recent appointment of Andrew Quade as head of industrial, asset and development management.