(Commonwealth) _ Wentworth’s recent strategic moves, mirroring a similar play from its acquisition of a $255 million portfolio late last year from GPT, underscore its deliberate expansion efforts within Sydney’s real estate landscape. This proactive stance aligns with its vision to fortify its holdings within key markets. GPT’s focus on bolstering its logistics sector has been evident, particularly under the leadership of departing CEO Bob Johnston. The company, alongside Canada’s Quadreal Property, expanded its joint venture to an impressive $2 billion, solidifying its industrial empire to nearly $5 billion. While GPT pursued growth in logistics, it concurrently divested smaller assets, creating an opportunity for entities like Wentworth to step in and amplify their presence. Wentworth, established in 2019, has carved a niche for itself in last-mile logistics, swiftly scaling up to become a prominent player in this domain. Its aggregate holdings, now surpassing the $1 billion mark, showcase its proactive expansion strategies. The recent acquisitions by Wentworth encompass valuable Sydney properties strategically situated for optimal logistical advantages. The addition of the 83 Derby St property in Silverwater, leased to IVE, capitalizes on its prime location within the established occupier precinct southeast of Parramatta’s CBD. Its proximity to the M4 Motorway enhances its logistical appeal, contributing to its fair value of $59.5 million and a weighted average lease expiry of approximately 2.5 years.
Another significant acquisition, the office and warehouse facility at 64 Biloela St in Villawood, further strengthens Wentworth’s portfolio. Leased to VIP Plastic Packaging, this 23,300sq m complex holds a value of $51.5 million and boasts a weighted average lease expiry of about four years. Its strategic location southwest of Parramatta, near the Hume Highway, adds to its appeal within the occupier precinct. Expanding beyond Sydney, Wentworth’s acquisition in Port Melbourne, 21-23 Wirraway Drive, signifies its reach into Melbourne’s real estate landscape. This modern office and warehouse facility spanning 7,200sq m and leased to Computershare reflects the company’s diversification strategy. Held at $28.5 million, this asset complements its growing empire, tapping into Melbourne’s industrial potential. Wentworth’s trajectory toward success has received significant reinforcement through its strategic collaboration with BlackRock-managed funds, culminating in the formation of Urban Logistics Co. This partnership embarked on an ambitious mission to develop a formidable $1 billion portfolio specifically targeting last-mile logistics real estate ventures throughout Australia. Over the years, this collaborative venture has demonstrated a keen strategic acumen in acquiring small-scale warehouses situated on expansive landholdings, effectively solidifying its position in the market.
The concerted efforts of Urban Logistics Co have been instrumental in curating a portfolio that embodies resilience and strategic advantage. By focusing on last-mile logistics, which constitute the crucial final leg of the supply chain, the venture has identified and capitalized on the growing demand for efficient and strategically positioned warehouse spaces. The success of this collaboration is evidenced by the deliberate acquisition strategy, targeting properties that cater to the evolving needs of the logistics industry. These strategically acquired warehouses serve as vital hubs for efficient distribution, meeting the increasing demands of e-commerce, quick delivery services, and consumer expectations for timely and reliable shipments. GPT’s decision to sell two industrial parks to Urban Logistics Co in November marked a significant shift within the industrial real estate sector. This transaction not only symbolizes a growing appetite for strategic acquisitions and divestments but also underscores the evolving dynamics and preferences among major industry players.
