Parramatta Blog

STRATEGIC SHIFTS IN REAL ESTATE: THE GROWING APPEAL OF LOGISTICS AND RETAIL ASSETS

In a flurry of recent transactions, we’re seeing a clear shift in how Real Estate Investment Trusts (REITs) are approaching investment strategies, with a notable focus on the synergy between logistics and retail. These deals are a reflection of the growing recognition that logistics is not only about distribution centres but also about capitalising on the retail assets that support them.

A prime example of this trend can be seen with recent moves into large-scale retail centres like Chullora Marketplace in Sydney and Waverley Gardens Shopping Centre. Both of these acquisitions are strategically significant because they’re anchored by essential retail brands such as Coles, Woolworths, and Aldi—highlighting the ongoing demand for convenience-focused assets that provide steady cash flow.

This isn’t just about retail expansion. It’s part of a broader strategy where logistics operators and REITs are starting to recognise the full potential of the logistics ecosystem. An example of this is the Light Horse Logistics Hub in Eastern Creek, NSW, an $850 million development now 90% leased to major tenants including Woolworths, HelloFresh, ALDI, and Bidfood. The hub’s location at the intersection of two major motorways and its focus on food logistics positions it as a key asset for the rapidly growing e-commerce and food delivery sectors. With tenants like Woolworths committing to a 20-year lease for a 93,000sqm distribution centre, the site demonstrates the value of combining modern logistics with retail supply chain infrastructure.

What these transactions represent is a growing understanding that investing in both logistics and retail components of the supply chain creates a diversified portfolio that benefits from the ongoing growth in e-commerce and the essential role of retail in consumer purchasing habits. Together, these sectors are not separate investments but complementary pieces of a broader, more integrated real estate strategy.

Our team at Raine and Horne Commercial Parramatta are experts in Western Sydney commercial real estate. With a mix of industrial and retail shopping centre assets under management our team has the expertise to offer valuable advice on asset growth, management, leasing, and sale.

Call our team for a confidential discussion on how we can help improve your returns, Duarte Figueira 0417 277 177 & Sean Czuczman 0414 555 449.