GIC acquires additional 24% stake in Australian logistics trust for $252m

4 Inglis Road, Ingleburn, one of Dexus's industrial portfolio.

Singapore’s sovereign wealth fund GIC has acquired an additional 24 per cent stake in Dexus Australian Logistics Trust (DALT), an unlisted trust that invests in logistics properties in Australia, for A$366.1 million (about $252 million), according to a disclosure made by real estate developer Dexus.

The additional acquisition in DALT’s core portfolio raises GIC’s stake in the trust to 49 per cent, trimming Dexus’s stake to 51. The Singapore investor first took a 25-per cent investment in the core portfolio in November 2018 following the establishment of the A$2-billion ($1.45 billion) unlisted trust with Dexus.

DALT is an open-ended unlisted trust with an active acquisition and development mandate, seeded with assets from Dexus’s existing industrial portfolio and development bank.

The joint venture’s core portfolio has a weighted average lease expiry of 5.3 years and average occupancy by income of 98 per cent. It features a 97-per cent exposure to the strong performing Sydney and Melbourne markets and is weighted to traditional logistics facilities.

The establishment of the trust in November 2018 raised Dexus’s third-party assets under management to A$14.3 billion, encompassing a range of investment vehicles including diversified funds.

As DALT’s foundation investor, GIC was given the put and call rights to acquire an additional 24 per cent by June 2020 but the sovereign wealth fund exercised the option ahead of schedule.

“Settlement is expected to occur on 1 April 2020, with proceeds from the sale initially being used to reduce debt and provide capital for future funding commitments, including Dexus’s development pipeline,” Dexus told the Australian Exchange.

GIC’s move to increase its stake in DALT comes less than a year after it announced that it has offloaded an undisclosed stake in the A$1.8-billion ($1.2 billion) Sydney office skyscraper Chifley Tower to Australian property group Charter Hall.

The sovereign wealth fund was reportedly looking to offload a 50 per cent stake in the property for around A$900 million ($604 million), which it acquired for A$710 million ($512 million) in 2005.

Australia’s listed property market is forecast to continue to offer investors relatively stable returns, with some positive factors offsetting some of the negatives, to give minimal capital growth, according to the 2020 outlook released by boutique investment manager Atlas Funds Management.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.