Brookfield buys A$225m logistics project in western Sydney

Brookfield has acquired Cornerstone Logistics Estate, a A$225m multi-unit project in Sydney's Penrith, lifting its ANZ logistics platform to 10 investments worth A$3bn. The 47,000 sqm estate is being developed with Precinct Capital at Nepean Business Park, targeting completion by mid-2027.

Canada’s Brookfield on Wednesday announced its acquisition of a multi-unit logistics project in western Sydney, with market sources confirming an expected end value of A$225 million ($161.5 million).

Cornerstone Logistics Estate will provide 47,000 square metres (505,904 square feet) of space across 13 warehouse units within Nepean Business Park in Penrith, with practical completion targeted for mid-2027, Brookfield said in a release.

The buy lifts Brookfield’s Australia and New Zealand logistics platform to 10 investments comprising 850,000 square metres of operating or planned warehouse space across Sydney, Melbourne and Auckland, with an estimated completed value of A$3 billion ($2.2 billion), the Toronto-based firm said.

“The long-term fundamentals supporting Australia’s logistics sector remain compelling,” said Ruban Kaneshamoorthy, Brookfield’s co-head of real estate in Australia. “Western Sydney continues to benefit from strong population growth, infrastructure investment and evolving supply chains, making it one of Australia’s most attractive logistics markets.”

Brookfield is developing Cornerstone in conjunction with Precinct Capital, the owner of Nepean Business Park, with the Australian family office delivering the project and Brookfield’s real estate team overseeing the development and handling leasing and asset management. The estate will feature 11 metre (36 foot) internal clear heights, extensive loading facilities and flexible tenancy sizes intended to suit a range of industrial and logistics users, Brookfield said.

The project has access to Sydney’s motorway network and links metropolitan markets with the new Western Sydney International Airport. Cornerstone forms part of a 47 hectare (116 acre) masterplanned precinct being delivered across eight stages on a former quarry site near the Sydney International Regatta Centre. The A$2 billion Nepean Business Park includes development-ready industrial lots, small industrial units and larger-format warehouses, together with planned pedestrian and cycling links to Penrith’s Great River Walk.

The Cornerstone acquisition comes as Brookfield seeks to nearly triple its Australian property funds under management from over A$17 billion to about A$50 billion within five years. The Canadian group said its Australian property transactions had totalled roughly A$15 billion during the preceding 18 months, with acquisitions accounting for about two-thirds of the activity.