This article is from the Australian Property Journal archive
THE Abu Dhabi Investment Authority (ADIA) is the latest offshore fund to up its exposure to the local industrial and logistics market in a big way, boosting its partnership with Logos by over $1 billion.
The Logos Australian Logistics Venture (LALV) now has investment capacity to grow the portfolio to a gross asset value of more than $5 billion.
It currently stands at $3.7 billion, across a portfolio consists of nine, large multi-tenanted logistics estates, including the recently acquired $802 million Qantas Sydney Airport precinct spanning nearly 14 hectares in Mascot, bought together with AustralianSuper.
Assets in the portfolio have been developed by the venture over the last seven years and include estates in Sydney, Brisbane and Melbourne. The portfolio has a weighted average lease expiry of 9.3 years and a high-profile tenancy profile featuring Woolworths, DHL, Toll Transport, Asahi Beverages, Hilton Foods and H&M.
“This latest commitment from ADIA’s subsidiary provides significant capacity to acquire additional major development sites, of which Logos has a number in exclusive due diligence,” Logos head of funds management, Australia and New Zealand, Sean Singh said.
“We are very pleased to extend our relationship with ADIA, following a very successful initial investment period,”
“This has seen LALV deliver strong returns while building one of Australia’s highest quality logistics portfolios, benefitting from LOGOS’ significant development pipeline and leveraging its tenant customer relationships in the Asia-Pacific region.”
LALV’s additional investment capacity increases Logos’ assets under management in Australia and New Zealand to over $14.3 billion. In recent months, pan-Asian logistics giant ESR became the major shareholder in Logos when it took over Singaporean investment house ARA’s controlling stake.
ESR last year teamed up with Singaporean sovereign wealth fund GIC for the record-breaking $3.8 billion acquisition of the Milestone Logistics portfolio from Blackstone. The US private equity giant then closed 2021 by taking a $2.1 billion stake in the Dexus Australian Logistics Trust.
Canadian group QuadReal is more than doubling the investment target of its partnership GPT from an initial goal of $800 million to $2 billion, and the vehicle has just been part of an organisational structure.
Meanwhile, the Abu Dhabi Investment Authority has just sold off its share in the Darling Quarter development in Sydney for about $625 million, and is reportedly close to striking a deal worth $440 million to sell the Novotel Sydney on Darling Harbour and the ibis Sydney Darling Harbour to