Australian real estate firm LendLease Group announced that it has struck a 50-50 partnership with Morgan Stanley Real Estate Investing to purchase a portfolio of eight assets from a private logistics group.
The assets comprise five leased industrial facilities and three development sites across Queensland, New South Wales, Victoria, and South Australia, with a developed value of approximately A$430 million ($312 million).
The five operational assets are leased on 15-year terms and have total gross leasable area of 100,000 square meters.
As part of the arrangement, ASX-listed industrial properties developer EMKC will take charge of the portfolio’s management and development, LendLease said.
The intention is to grow the 50-50 joint venture through the acquisition of develop-to-core industrial assets provided through pipeline opportunities sourced by LendLease and its development manager EMKC, as per the announcement.
Lendlease said it will seek to sell down part of its 50% share over time to institutional capital partners and maintain a co-investment stake.
“The industrial sector has been a strong performer for Lendlease and this acquisition provides additional scale and diversity to our industrial platform with development opportunities that are increasingly attractive to our investors,” said LeandLease Investment Management managing director Scott Mosely.
Australia’s industrial sector continues to benefit from global thematics including e-commerce, on-shore manufacturing, and a desire to be positioned close to the end-consumer, Mosley added.
“This has driven increased demand for strategically located assets, with Campbelltown and Altona being prime examples of tightly held precincts that will continue to benefit from transport connectivity and continued investment in infrastructure,” he said.
Last month, LendLease acquired a portfolio of three assets from Mirvac Industrial Logistics Partnership for approximately S$161 million through its Australian Prime Property Fund Industrial.
The assets are located in prime, core industrial locations in South West Sydney and West Melbourne.
Industrial real estate platform ESR Australia, another key player in the country’s real estate market, also expanded its core plus logistics strategy in Australia by committing about $444 million into the newly-launched ESR Australia Logistics Partnerships II.