GPT launches $800m logistics partnership with QuadReal Property Group
The GPT Group (“GPT” or “Group”) today announced it has entered into a strategic partnership with QuadReal Property Group (“QuadReal”), with the establishment of the GPT QuadReal Logistics Trust.
The 50:50 joint venture has an objective to acquire and develop a high quality portfolio of Australian prime logistics assets, with an initial targeted investment of $800 million.
GPT Managing Director and CEO, Bob Johnston, said: “Growth of our Logistics portfolio is a core focus for GPT and we have made strong progress in securing development and investment opportunities in the sector. The logistics market continues to benefit from structural tailwinds driven by growth in ecommerce, food and pharmaceuticals distribution and the recovery in the housing market. GPT is delighted to be building a significant capital partnership with QuadReal that will leverage GPT’s brand and track record in the sector to create value for both parties.”
Peter Kim, QuadReal Managing Director, International Real Estate, Asia adds: “We could not be more aligned with the GPT team. We share a commitment to the fundamental reasons to expand logistics opportunities for the tenants with whom we partner. We also share a commitment to how we will do business together as both organizations consider the best for today and tomorrow in design, execution, environmental stewardship and the relationships we foster.”
The partnership launches with more than 20 per cent of the targeted investment committed across two assets. This includes the acquisition of a $137 million fund-through1 development at Truganina in Melbourne’s west, and a $38 million speculative logistics development at Metroplex Place, Wacol in Brisbane.
The partnership provides an opportunity for both GPT and QuadReal to accelerate the growth of logistics assets under management. GPT has been appointed to provide investment management, capital transaction, property management and development services to the joint venture, leveraging the Group’s strong track record in logistics development and asset management. QuadReal brings its own extensive experience in the industrial sector, owning and managing more than 80 million square feet (7 million square metres) of single-and-multi-tenant industrial buildings across the globe. The organizations share an aligned commitment to environmental, social and governance (ESG) initiatives, which will be incorporated into the joint venture’s activities.
GPT Head of Office and Logistics, Matthew Faddy, said: “The value of the GPT Logistics portfolio has doubled since 2017 to $3.0 billion, and we continue to achieve strong growth through successful developments and targeted acquisitions. As we look to continue driving growth in the Logistics sector we are pleased to partner with a global real estate investor in QuadReal.”
1 Subject to Foreign Investment Review Board approval
About The GPT Group
The GPT Group is one of Australia’s largest diversified property groups, listed on the ASX and a constituent of the S&P/ASX 50. GPT owns and manages a $24.4 billion portfolio of retail, office and logistics property assets across Australia. The Group’s logistics portfolio consists of 41 prime logistics assets, totalling in excess of 1,000,000 square metres leased to more than 80 tenants. In 2020, the logistics portfolio grew to $3.0 billion with 165,200 square metres of new facilities developed and acquired. The Group has a pipeline of development projects with an expected end value of approximately $1 billion.
About QuadReal
Headquartered in Vancouver, Canada, QuadReal Property Group is a global real estate investment, operating and development company. QuadReal manages the real estate and mortgage programs of British Columbia Investment Management Corporation (BCI), one of Canada’s largest asset managers with a $171.3 billion portfolio. QuadReal manages a $44.2 billion portfolio spanning 23 Global Cities across 17 countries. The company seeks to deliver strong investment returns while creating sustainable environments that bring value to the people and communities it serves. Now and for generations to come.
QuadReal: Excellence lives here.
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