Australia’s Hale Raises $532M for Second Logistics Fund Series Backed by Warburg, Oxford

Australian developer and fund manager Hale Capital Partners has secured A$750 million ($532.4 million) in equity commitments for the second vintage of its logistics investment platform, with returning investors Warburg Pincus and Oxford Properties anchoring the raise.

The capital will be deployed through two vehicles, HCLF2 and HCILF2, targeting supply-constrained infill logistics markets across Australia, Hale said Tuesday in a release. HCLF2 will pursue opportunistic development of modern logistics and last-mile facilities in dense urban markets, while HCILF2 will focus on value-add and core-plus strategies targeting income-producing assets and repositioning opportunities.

Founded by Robert McMickan and Nicholas Bradley in 2021, Hale manages A$3.3 billion in assets on behalf of institutional investors. McMickan said the fresh capital marked a transformative milestone for Hale, reflecting deep conviction in the Sydney-based firm’s strategy and platform.

“We are particularly grateful for the continued support from Warburg Pincus and Oxford Properties,” McMickan said. “Having cornerstoned our first vintage, their decision to re-commit to this second series is a strong endorsement of our execution capabilities and track record.”

GIC Said Investing

The latest commitments were provided by a consortium of Manhattan-based Warburg Pincus, Canada’s Oxford Properties and a third global institutional investor, according to Hale. The Australian Financial Review reported Monday that Singapore sovereign giant GIC was also investing in the new fund series.

Hale said the dual-track strategy lets the platform capitalise on current dislocations in the Australian property market while demand for logistics space continues to be supported by e-commerce growth, population expansion and infrastructure investment. Vacancy for infill industrial assets in key east coast markets remains near historic lows, with limited land supply in inner-ring locations supporting rental growth and redevelopment opportunities.

Private equity major Warburg Pincus, a manager of more than $100 billion in assets globally, first partnered with Hale in 2021 and has backed the platform’s expansion.

“Our re-commitment reflects our conviction in the long-term growth opportunities in the supply constrained segments of the Australian logistics market and our confidence in Hale’s vertically integrated platform and its ability to consistently deliver across single- and multi-level logistics, cold storage and industrial outdoor storage,” said managing director Andrew Fitzpatrick.

Much of Warburg’s existing exposure to Australia’s real estate market has come through companies in its portfolio, such as industrial giant ESR and self-storage provider StorHub. The US firm has also invested in a build-to-rent JV with local player KIO and backed MA Financial Group’s private credit strategy targeting Australia’s residential real estate sector.

Building on Success

Oxford Properties, the global real estate arm of Ontario pension plan OMERS, also renewed its commitment after backing Hale’s inaugural logistics vehicles. The Toronto-based investor manages C$86 billion ($63 billion) in real estate assets globally across sectors including logistics, office, residential and life sciences.

“Since our cornerstone investment in Hale’s inaugural vintages, the team has successfully executed against strategy, building out one of Australia’s premier last-mile logistics portfolios, and an impressive track-record across the full asset lifecycle,” said Australia head Alec Harper.

Oxford has also been a key backer of Investa’s Aussie office funds, one of which sold the former MLC Building in North Sydney to Wentworth Capital last month for just over A$100 million.

AFR said Monday that in addition to GIC’s involvement in Hale’s second fund series, the $936 billion sovereign fund has formed a A$500 million retail joint venture with Haben Group and agreed to buy five retail assets from the ASX-listed RAM Essential Services Property Fund.