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Buyers to battle for rare Qantas portfolio

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Investors and developers are set to compete strongly for a once-in-a-lifetime opportunity to acquire a rare, scaleable Sydney industrial and commercial portfolio being offered to the market by Qantas.

 

Qantas has appointed Colliers’ Michael Crombie, Trent Gallagher, Gavin Bishop and Sean Thomson to offer the Qantas Investment & Land Portfolio for freehold sale or 99-year lease either individually or in-one-line via an International Expressions of Interest campaign.

 

The properties are situated at 263 – 273 and 273A Coward Street, Mascot; 62 – 86 Kent Road, Mascot; 297 King Street, Mascot; and 350 King Street, Mascot. They offer a combined building area of 32,684sqm and a total site area of 137,565sqm, with development potential for more than 230,000sqm of gross floor area.

 

The Qantas Investment & Land Portfolio offers:

 

  • A long-term sale and lease back of Qantas’ 21,795sqm state-of-the-art distribution centre, positioned on a large 38,920sqm prime industrial land holding, providing a secure income profile for an initial 10-year term with further 2 x 5-year options;
  • Multiple allotments of IN1 Industrial land totalling 82,155sqm, structured on three-year lease back and with vacant possession, ideally positioned for the development of multi-level warehousing;
  • A substantial B5 Business zoned lot of 16,490sqm, benefiting from multiple development opportunities and a 3:1 FSR, available for immediate development;
  • Significant potential value-add through planning uplift allowing for greater density on the various land parcels;
  • Initial net passing lease back rental of $10,529,950 per annum, benefitting from a fixed income profile;
  • Long term WALE of ten years on the distribution centre and up to three years on some of the other industrial land.

Colliers’ Head of Strategic Advisory, Neil Murray; Managing Director of Valuation & Advisory Services, Dwight Hillier; and Senior Analyst Rebecca Ngan, have been working with Qantas for more than a year to review the company’s owned and leased portfolio.

 

Mr Crombie said the portfolio represented a once-in-a-lifetime opportunity underpinned by superior scale and supported by Australia’s most recognisable brand.

 

“This is a truly unique chance to acquire a scalable, 100% Sydney-centric portfolio with significant future upside, located within Australia’s most tightly held industrial and commercial market,” Mr Crombie said.

 

“Located within the heart of Mascot, immediately adjacent to the Sydney Kingsford Smith Airport Precinct, the development sites totalling 98,645sqm offer an unprecedented opportunity to develop (*STCA) a super core, multi-level industrial and logistics estate and institutional grade mixed use development of commanding scale, and become one of the largest industrial landlords within the South Sydney market."

 

“Prime grade institutional investment and development opportunities of this nature are very rarely offered to the market and are highly sought after. This portfolio is particularly rare as it is located in the highly sought-after key transport corridor of South Sydney and adjacent to Sydney Airport Precinct, with an end value, once fully developed, estimated at around $2 billion.”

 

There is also income security underpinned by various leasebacks to ASX-listed Qantas Airways Limited.


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Gavin Bishop

Head of Industrial Capital Markets | Australia

Industrial

Sydney CBD

Gavin is the Head of Industrial Capital Markets Australia and the Head of the NSW Industrial Team at Colliers International, where he has been specialising in industrial property for 20 years. Based in the Sydney CBD Head Office, Gavin manages a highly successful team of over 40 staff across broader Sydney in key industrial precincts.

Gavin specialises in the national industrial capital markets and has excellent relationships across a broad spectrum of institutional, international and private investors. Over Gavin’s time with Colliers, he has completed hundreds of deals in industrial property, settling over $14 billion in his career to date, and leasing over 400,000sqm. Gavin enjoys a 75% market share of industrial capital markets share in NSW.

Gavin has worked extensively in the sale of industrial portfolios of up to 30 assets in one portfolio. Gavin and his team have sold 20/22 of all industrial portfolios in the Australia over the last four years, including the J.P. Morgan Portfolio ($250m), Altis Portfolio ($342.5m) and GIC/Australand Portfolio ($1.073b) and AMP Portfolio ($105m).

Some major distribution centre sales that Gavin and his team have been involved in over the last two years include, the Calibre, Eastern Creek ($130.1 million), 1 Eucalyptus Place, Eastern Creek ($90.5 million), 3 Roberts Road, Eastern Creek ($253 millions) and 6-20 Clunies Ross Street, Greystanes ($76.6 million)

Gavin has focused on building deep relationships with his clients, providing the latest in-depth information about logistics markets across Australia, which in line with his extensive track record, has seen Gavin achieve record-breaking results for his clients.

Gavin is a long-standing member of the Colliers team, having joined in 2000 as a graduate valuer. Gavin commenced with Colliers as part of their Scholarship Program and he was fortunate to work across multiple service lines and locations across Sydney, before settling in the Industrial team in Sydney South in 2001. Over the last 20 years, Gavin has progressed through the industrial business including managing the Sydney South and Sydney South West offices, before moving into the NSW State Product Director for Industrial in 2010.

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Sean Thomson

Director, Industrial Capital Markets

Industrial

Sydney CBD

Sean Thomson works for Colliers International as Director of Industrial Capital Markets, Australia, where he specialises in the sale of industrial & logistics assets nationally.

Sean works alongside Gavin Bishop (Head of Industrial Capital Markets, Australia) on a day-to-day basis and holds excellent relationships across a broad spectrum of corporate, private, institutional and international investors.

Having been involved in excess of $9.0 billion of strategic valuation advice, his experience and understanding of the levers which can best maximise value together with the capital markets team’s track record, is integral in achieving the strongest possible result for his clients.

Sean has been involved in many large-scale portfolio divestments including:

  • The Super Core Logistics Portfolio ($186 million)

  • The Greenlit Brands Portfolio ($171 million)

  • Calibre, Eastern Creek ($130 million)

  • The Kaufland Portfolio ($120 million)

  • The AMP Portfolio ($105 million)

Sean holds an unmatched track record in divesting major distribution centres including:

  • Toyota South Sydney ($171 million)

  • 59 Lockwood Road, Eastern Creek ($107 million)

  • 37-39 Wentworth Street, Greenacre ($100 million)

  • 1 Eucalyptus Place, Eastern Creek ($91 million)

  • 342 Hammond Road, Dandenong South ($87 million)

Sean has focused on building deep relationships with key global institutional clients, providing the latest in-depth information about the logistics market across Australia, which in-line with his extensive track record, has seen him achieve record-breaking results for his clients.

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Michael Crombie

National Director | Property Sales & Leasing

Industrial

Sydney South

Michael is the National Director of Property Sales & Leasing at Colliers International and also holds the role of Director in Charge for the Sydney South office. Based in Mascot, Michael's team of eleven agents is one of the highest performing teams in Australia.

Since joining Colliers' in 2001, Michael's specialisation is core South Sydney, with a heavy focus on large transactions of land, investments and residential sites as well as large leasing mandates. Michael has worked on some of the largest deals in industrial history, including a recent transaction at Carter Street Homebush for over $660 million. 

Working in a changing and often challenging market Michael prides himself on providing creative agency solutions to his clients. keeping ahead of the trends, leveraging off Colliers' industry leading platforms, to ensure his clients achieve better results, faster.

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Trent Gallagher

National Director | Property Sales & Leasing

Industrial

Sydney South

Trent has been in the real estate industry for over 12 years and in that time, he has thrived in this competitive industry and established himself as one of the most highly esteemed agents within the industry. He has honed his skills in varied markets whilst specialising in commercial and industrial properties from which he has gained immense property knowledge. Since coming to Colliers International, he has excelled across the property spectrum and has become known for his hard work becoming the leading agent in the Sutherland Shire, St George, South Sydney and the Inner West markets.

Trent continues to endeavour to be at the forefront of the industry with innovative methods in canvassing, marketing and strategic sales. He strives to actualize the goals of his vendors and work hand in hand with prospective purchasers to ensure all parties achieve the best result efficiently.

Trent takes personal pride in his responsibilities to his clients and delivering service excellence across a variety of situations with his experience and knowledge to recognise and assess any industrial, commercial, retail or residential development site requirement. His assembly of long term clients is a testament to his commitment to his work and ensuring he delivers the best result every time.

 

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