CASE STUDY I INVESTMENT MANAGEMENT
An ESG-driven asset
Published 6 December 2024
TCorp’s investment in the Moorebank Intermodal Precinct
The LOGOS Australia Moorebank Venture was established in 2021, having secured the Moorebank Intermodal Precinct (MIP) site, comprising around 243 hectares of strategically located prime logistics real estate in Sydney’s southwest industrial market.
MIP was acquired by TCorp and three consortium partners in 2021 for $1.67bn and has a projected value of over $4bn upon its completion in 2026.
MIP represents a rare opportunity in the Australian property market – not only a sound investment to add to TCorp’s property portfolio but the development is also driven by significant Environmental, Social and Governance (ESG) characteristics. The precinct is expected to deliver more than $11bn in economic benefits over 30 years to local businesses and the community, through improved productivity, reduced business costs and lower congestion.
This acquisition of MIP as part of a consortium was a first for TCorp, increasing diversification away from wholesale property funds. TCorp’s consortium partners are major superannuation fund AustralianSuper, Canadian real estate investment company Ivanhoé Cambridge, and global alternatives investor AXA IM Alts.
Along with the other major investors, TCorp sits on Moorebank’s Investment Committee to:
- Evaluate strategy for the current and future operation of the facility
- Approve material decisions (leasing, capital expenditure, capital structures, precinct strategy)
- Oversee the actions of the manager to monitor risk, including ESG risks
- Actively influence outcomes.
Major ESG considerations
The TCorp Property team considers MIP the ‘next generation’ of logistics parks with the development incorporating market leading environmental and sustainability credentials. Working with local councils, schools and other stakeholders, MIP incorporates biodiversity elements, educational programs and community outreach.
Situated within a highly developed area of Sydney, MIP has potential capacity to accommodate over 900,000 sqm of total industrial Gross Lettable Area.
It is directly adjacent to Australia’s largest rail intermodal terminal with direct train links to Port Botany and interstate rail which, once fully operational, will provide benefits to surrounding community through:
- Reducing heavy vehicle movements by more than 3,000 trucks from Sydney roads each day
- Reducing truck emissions by 110,000 tonnes of carbon dioxide equivalent per year
- Delivering net annual carbon emissions savings, equivalent to removing 11,000 vehicles from the road for a full year.
There are also several other major ESG-related benefits, including:
- 60,000 MWh/year of energy from renewable energy sources (solar) has been installed on the rooftops of the assets, capable of generating 80+ GWh per year, which will allow all warehouses on site to be substantially powered by renewable energy
- The creation of approximately 6,800 jobs
- Environmental protection through the remediation and safeguarding of 100 hectares of land previously used by the Department of Defence
- A biodiversity corridor to offset the production of the development area
- Working with local schools to offer eco tours of the biodiversity area and industry immersion days to encourage training and workplace participation.
A partnership of like-minded investors
Investment in MIP came after 12 months of work by the TCorp Property team, which conducted its risk management assessment to ensure appropriate controls were in place.
Each investor partner plays an active role in the governance of MIP to evaluate strategies and to challenge and approve the manager’s material investment initiatives, with the ultimate goal of supporting financial and operational performance. A key element of the governance approach is influencing outcomes to ensure the asset continues to deliver long-term environmental, sustainability and community benefits, in addition to the investment returns.
The success of this investment partnership helps TCorp to achieve enhanced portfolio resilience. It also functioned as the precursor for TCorp to invest in further properties with a group of other like-minded investors in the UK and US.
