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Bidders line up on runway for $550m Qantas assets

Uber-acquisitive Charter Hall, Goodman and ESR are lining up as keen buyers of the lucrative $550 million-plus Qantas investment and land portfolio campaign which closes on Friday.

Such is the attractiveness of the sale and leaseback deal that other strong contenders are Stockland, Mirvac, LOGOS and the Aliro Group, run by former co-chief executive and founder of Charter Hall, David Southon.

Traditionally, the final round of bids for key assets is down to two or three main players, but Qantas and its advisors, Colliers, are said to have been inundated with numerous bids, all said to be compelling.

Qantas has decided to sell its non-core land assets in Mascot, Sydney, and is expected to net at least $500 million.

Qantas has decided to sell its non-core land assets in Mascot, Sydney, and is expected to net at least $500 million.

Colliers’ agents declined to comment on any of the investment campaign, which is being offered as either a freehold sale or on a 99-year lease in one line or individually.

Charter Hall and Goodman are the largest owners in the area, but ESR has been very active within the industrial property sector. In April, ESR paid $3.8 billion for the Blackstone Milestone portfolio and said it would provide ESR Australia with immediate scale to make it the third largest owner of logistics real estate in Australia.

Located in the heart of Mascot, right next to the Sydney Kingsford Smith Airport precinct, the development sites totalling 98,645 square metres offers an opportunity to develop a “multi-level institutional-grade mixed-use development” and to become one of the largest industrial landlords within the south Sydney market.

Qantas has owned land since the 1960s and decided to sell following a wide-ranging property review which confirmed the Qantas headquarters would remain in Sydney.

The package includes several properties covering almost 14 hectares in the heart of south Sydney’s booming industrial precinct.

Buyers will get the Qantas distribution centre, which sits on 38,920 square metres and will be offered as a 10-year sale and leaseback; two development sites totaling 82,000 square metres, which could host a multi-storey site development and a business park development site of 16,000 square metres.

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