Singapore’s JL Family Office Buying Melbourne Shed for First Aussie Acquisition

The Land Managers is making its first direct purchase in Australia after the real estate investment division of Singapore’s JL Family Office teaming up with unidentified co-investors to acquire a Melbourne logistics facility for A$26.5 million ($16.8 million), the company said in a statement

The company, which invests the fortune of ARA Asset Management founder John Lim, chose for its first Aussie buy a freehold logistics property at 40 Garden Street – 38 kilometres east of Melbourne’s central business district – which will be asset managed by local asset manager Terre Property Partners.

“We believe that there is a window of opportunity to capitalise on the tight supply dynamics in the Australian logistics space. Given TPP’s track record of development in the Australian logistics space, we are confident that we can execute this value-add strategy adeptly,” said Andy Lim, group chief executive of JL Family Office and founder of The Land Managers. “We are pleased to embark on this value-add strategy in the strategic location of East Melbourne.”

The Land Managers is getting into the Melbourne market as the capital of Victoria state continues to enjoy a logistics boom, according to a report from JLL. During the second quarter of this year gross take-up by occupiers jumped 21.6 percent from a year earlier, the property consultancy’s data shows, with rents climbing 2.6 percent from April through June from the preceding quarter. Rents for the 12 months ending 30 June were up 18.9 percent from the preceding period.

Value-Add Plan

With the acquisition set to be completed in the fourth quarter of this year, The Land Managers plans a comprehensive enhancement initiative for the 10,647 square metre (114,603 square foot) property designed to increase its gross leasable area, boost rents and enhance its capital value.

The asset sits on a 37,139 square metre site with access to Melbourne’s central business district and Victoria state’s distribution networks via major roads including Eastlink (M3) and Mt Dandenong Road. Currently vacant, the property is 6 kilometres (3.73 miles) away from the city’s Bayswater Business Precinct, the second-largest commercial hub in the east side of the metro area.

The company believes the investment is aligned with growing demand for industrial space in Melbourne, which it sees being driven by factors such as growing population, widespread adoption of e-commerce, a growing preference for larger inventories, occupier flight to higher quality facilities, and the ongoing improvement of last-mile logistics infrastructure.

Expanding Portfolio

The property investment firm explained the deal as a bet on the future of Australia’s economy.

“Despite a challenging global investment climate, we feel strongly that Australia’s long standing immigration policy puts it in a good position to weather some of the economic headwinds ahead,” Lim said.

First established in 2020, The Land Managers in October of last year agreed to acquire 6 Cavendish Place, a commercial building in West London’s West End for £18.6 million (then $21 million).

That office buy came just two months after the JL Family Office teamed up with Savills Investment Management to establish a £200 million fund for developing build-to-rent properties in the UK.

In October 2021, The Land Managers, together with its frequent partners Straits Real Estate, invested in a £360 million Savills Investment Management fund targetting opportunities in UK retail parks.

In January of 2022 ESR Group completed its $5.2 billion buyout of John Lim’s ARA Asset Management, with the elder Lim having been a major shareholder in the company.