GIC establishes $1.4b logistics JV with Australia’s Dexus

Dexus Australian Logistics Trust (DALT) will be seeded with a A$1.4 billion logistics portfolio mostly consisting of assets in Sydney and Melbourne, with an average lease expiry of 5.3 years and occupancy of 98%. The assets comprise mainly core logistics facilities with good access to major roads, rails, and ports.

DALT also has a pipeline of three development projects expected to value A$500 million upon completion, and will seek additional investments in core logistics properties in Australia on an opportunistic basis.

GIC will take an initial 25% stake in DALT’s core portfolio, with options to raise its stake to 49% by June 2020. The fund will also take a 49% holding in DALT’s seed development portfolio.

“We believe the structural and consumption growth in Australia, particularly from favorable demographics and growth in e-commerce, will continue to drive demand for logistics properties,” said Lee Kok Sun, chief investment officer for real estate at GIC, in a statement. “This portfolio of quality assets in strong locations is well positioned to capitalize on this and generate steady income over the long term.”

The Dexus JV follows a similar partnership announced earlier this year between GIC and Singapore-based warehouse operator GLP, focused on China. The venture will invest up to $2 billion in Chinese logistics properties, with GLP China contributing seed assets and acting as manager.

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• Topics
• Australasia
• Buyout
• Real estate
• Australia
• GIC Private
• Logistics