The $400 million MFS Diversifid Group has bought an industrial development site in Sudney's south-west and, with development manager Augusta Properties, will start work immediatly on a $28 million business park.

The property, at 17 Willfox Street, Condell Park, has been acquired from the Sutherland based Malcolm Land Developments fo $10.1 million.

Augusta Properties will manage the development and leasing of a 15,800 sq m business park due for completion early next year.

The chief executive of MFS Diversified, Brent Hailey, said the partnership with Augusta offered the group entry into the western Sydney market to cater for the demand for modern industrial lease properties.

Augusta director Wayne Smith said that as the major industrial developers chased the huge logistic opportunities, an opportuity had opened for the mid-sized projects with units of between 700 sq m and 5000 sq m.

The Condell Park project, to be called MFS M% bankstown, would be leased at "competative rentals" with a number of tenancy agreemetns at an "advanced stage".

The sale of the land was handled by L J Hooker Commercial Bankstown and Colliers International.

At the half year, MFS Diversified had a $401 million investment portfolio with 27 retial, industrial and commercial properties plus 23 retirement villages.

Another $109 million in property was being developed.

The portfolio has nine industrial properties, including three in Sydney, two in Seven Hills and one in nearby North Rocks.

The Group plans further office, retail and industrial developments, and recently paid $34 million for a warehouse under construction in Yatala, south of Brisbane.

Augusta Properties is a specialist property dvelopement group, headed by Brian Tasker, Martin Hillier and Wayne Smith.

The group is working on $250 million in commercial, industrial and residential projects in Sydney, the NSW Souther Highlands, Lake Macquarie and the Byron and Tweed shires on the NSW north coast.

The Australian Financial Review
Wednesday August 1, 2007 - page 64