The GPT Group (“GPT” or “Group”) is pleased to announce 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