Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • 2021 Mingtiandi Event Calendar
    • Join the Mingtiandi Asia Value-Add Forum 2021
    • Join the Mingtiandi Multi-Family Investment Forum 2021
    • Join the Mingtiandi Logistics Real Estate Forum 2021
    • Join the Mingtiandi Sustainable Real Estate Forum 2021
    • Join the Mingtiandi Data Centre Forum 2021
    • Join the Mingtiandi Office Strategies Forum 2021
    • Join the Mingtiandi Proptech Forum in November
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

GIC Pays A$366M to Boost Stake in A$2B Aussie Logistics Trust

2020/01/07 by James Hatton Leave a Comment

Dexus’ 17,900 sq m Quarry Industrial Estate

GIC has entered 2020 with an A$366.1 million ($253 million) logistics investment, as the Singaporean sovereign wealth fund bets on warehouses for the new year.

The $100 billion fund made its investment by acquiring an additional 24 percent stake in Dexus Australian Logistics Trust (DALT), according to a stock exchange disclosure by the manager of the unlisted trust, increasing GIC’s interest in the vehicle to 49 percent.

Altus Cashflow Ebook

The acquisition comes just over a year after the unlisted trust was set up as a joint venture between GIC and Australia’s Dexus REIT, with the sovereign wealth fund initially taking a quarter stake in the investment entity with put and call rights to acquire an additional 24 percent by June this year.

Targeting Aussie Logistics

The trust has an active acquisition and development mandate targetting core logistics properties in strong performing areas of Australia with good access to transport networks, according to Dexus.

lee-kok-sun gic

GIC’s head of real estate investment Lee Kok Sun is still keen on Aussie sheds

To follow through on that strategy, the trust eight months ago paid A$26.5 million for a 9.2 hectare (2.5 acre) site at 425-479 Freeman Road in the suburbs of the Queensland capital of Brisbane, which it plans to transform into a 55,000 square metre logistics facility.

Dexus said in its bourse filing that GIC had exercised its second tranche rights to make the acquisition, reducing the Aussie entity’s ownership stake to 51 percent, without providing a rationale for the investment. GIC has not commented publicly on the transaction.

That Queensland facility adds to the close to A$2 billion in Australian logistics assets which Dexus used to seed the joint venture when the open-ended trust was established in November 2018.

Multi-Family Forum

Comprising A$1.4 billion of completed properties and a development land bank worth A$500 million on completion, Dexus said at the time that the portfolio had a weighted average lease expiry of just over five and average occupancy by income of 98 percent.

With 97 percent of the assets in the Sydney and Melbourne markets, Dexus said the portfolio is weighted to traditional logistics facilities leveraged to the growth of e-commerce.

In addition to its Queensland acquisition, since 2018 the DALT trust has moved closer to completing a 35,300 square metre (379,966 square foot) logistics development in the Melbourne suburb of Ravenhall. That A$83 million asset from the trust’s seed portfolio is now pre-leased to a food processor and distributor starting from September, when it is expected to be ready for occupancy.

Increasing the Global Reach of GIC’s Portfolio

GIC is increasing its exposure to Australian logistics just three weeks after it purchased a one million square metre portfolio of logistics assets in Europe from Apollo Global Management.

The sovereign fund paid €950 million for that set of 28 logistics facilities in Austria, Belgium, Germany, the Netherlands, Poland and Slovakia.

Sustainability Forum

At the time of that European deal, GIC said that it intends to integrate its new continental portfolio into its existing pan-European warehouse platform P3 Logistic Parks, which it acquired from TPG Real Estate and Ivanhoé Cambridge in 2016 for €2.4 billion.

Aussie Logistics Attracting Overseas Interest

The Singaporean fund is not the only Asia-based investor with an appetite for Australian industrial and logistics assets.

Just under a month ago, Hong Kong-listed logistics specialist ESR announced an A$138 million mandate to raise fresh capital by offering investors access to a set of its Australian business parks and other logistics assets.

One month prior to that announcement, the Warburg Pincus-backed company established a A$350 million mandate with China Merchants Capital to invest in logistics assets down under.

Related Stories

  • GIC Pays Brookfield $170M for 25% Stake in Perth Office ProjectGIC Pays Brookfield $170M for 25% Stake in Perth Office Project
  • ESR Gets A$480M Australia Commitment From GIC, Signs Japanese Mega-LeaseESR Gets A$480M Australia Commitment From GIC, Signs Japanese Mega-Lease
  • GIC Backs A$1B ESR Australia Logistics Development PartnershipGIC Backs A$1B ESR Australia Logistics Development Partnership
  • GIC JV Buys 50% Stake in A$1.3B Melbourne Office ComplexGIC JV Buys 50% Stake in A$1.3B Melbourne Office Complex

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Logistics Tagged With: Australia, daily-sp, Dexus Property Group, Featured, GIC, highlight, Logistics

Office Investment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Altus Cashflow Ebook

Get Mingtiandi Delivered

Sustainability Forum

MTD TV

Data Centre Operators Tackle APAC Expansion Challenges in MTD TV Panel

Warburg Pincus, Princeton Digital Foretell Asia’s Data Centre Future

More MTD TV Videos

Latest Stories

Saunders BlackRock

BlackRock Closes on $1.2B for Asia Property Fund V

Sachin Doshi Weave

Weave Moves into Multi-Family With Buy in Hong Kong’s Mid-Levels

karim habra ivanhoe

Ivanhoe Cambridge, Embassy Group Launch $500M Indian Office Platform

Sponsored Features

Tony Horrell

Colliers’ Global Investor Sentiment Report Anticipates Up to 50% Surge in Investment in 2021 Sponsored Feature

Andrew-Slevin-John-Foord (4)

Insurtech to Help Address Underinsurance Across Asian Real Estate Assets in 2021 Sponsored Feature

CK Lau

Asia Pacific Logistics Sector: Increasingly Varied Sector Requires Multiple Approaches Sponsored Feature

More Sponsored Features>>

MTD-QR-Code-320

Top Stories

Kerry-GIC JV Buys Mixed-Use Site in Shanghai’s Pudong District for $930MKerry-GIC JV Buys Mixed-Use Site in Shanghai's Pudong District for $930M

Wing Tai, Champion REIT Team with HK Tycoons for $360M London Office BuyWing Tai, Champion REIT Team with HK Tycoons for $360M London Office Buy

Asia Real Estate People in the News 2021-03-01Asia Real Estate People in the News 2021-03-01


Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • Events
    • 2021 Mingtiandi Event Calendar
    • Join the Mingtiandi Asia Value-Add Forum 2021
    • Join the Mingtiandi Multi-Family Investment Forum 2021
    • Join the Mingtiandi Logistics Real Estate Forum 2021
    • Join the Mingtiandi Sustainable Real Estate Forum 2021
    • Join the Mingtiandi Data Centre Forum 2021
    • Join the Mingtiandi Office Strategies Forum 2021
    • Join the Mingtiandi Proptech Forum in November
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Newsletter Subscription
  • Terms of Use
  • Privacy
  • Advertise
  • Join the Mingtiandi Team