Brookfield goes the last mile to expand logistics
The company has ambitions to double its portfolio with a focus on Sydney and Melboune.
Canadian giant Brookfield Asset Management has bolstered its Australian logistics platform to $1.25bn with a new estate in the western Sydney suburb of Villawood which is now fully operational, and plans to grow its overall portfolio to $2.5bn.
Brookfield had secured leasing commitments for most of the Connect Central Sydney Logistics Estate, with more than 90 per cent of the space leased or under advanced negotiation. Big tenants include Kerry Logistics, Honest to Goodness, Scope Joinery, Ricky Richards, FJT Logistics, Seima and Euro Car Parts.
Brookfield now has two more sites in Melbourne – the Cardinia Logistics Estate in Pakenham and a development site at 8–32 Patullos Lane, Craigieburn – slated for development which are also close to key infrastructure and major road networks. Once complete, there will be about 330,000sq m of net lettable area across its portfolio.
Since 2021, Brookfield has expanded its Australian real estate holdings into logistics as part of a broader push into alternative sectors. It is riding the growth of e-commerce, medium-term rental growth and the scarcity of last-mile facilities in key parts of the eastern seaboard.
Brookfield co-head of Australian real estate Ruban Kaneshamoorthy said the company had been focused on building its exposure to logistics, capitalising on record low vacancy in Australia’s major cities where there was a supply and demand mismatch.
“Our aspiration is to more than double the size of our portfolio during the next 18 months,” Mr Kaneshamoorthy said.
Connect Central Sydney Logistics Estate is a 12.6ha site at 2 Christina Road, Villawood, and it spans more than 69,000sq m across 12 buildings, with individual spaces ranging from 2000 to 18,000sq m. It has a focus on smaller businesses chasing last-mile storage facilities.
Built by Vaughan Constructions and developed by Time & Place and Brookfield Properties, the estate is well connected to Sydney’s major motorways.
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