M&G Real Estate diversifies Australian exposure with logistics investment
M&G Real Estate, one of the world’s leading financial solutions providers for real estate investors, has acquired a 50 percent share in a portfolio of industrial properties across Sydney and Brisbane. The transaction is a partnership with Dexus, one of Australia’s leading real estate groups, and was made on behalf of its core Asian property strategy. M&G Real Estate will become a 50 percent joint venture partner once the deal completes.
This latest investment was M&G Real Estate’s third acquisition in Australia in the year 2018, following 40 Mount Street in Sydney and 80 Ann Street in Brisbane, and brings its total exposure to Australian real estate to AU$2.37 billion. Prime logistics in Australia is poised for growth backed by positive structural drivers and an evolving e-commerce market alongside ongoing infrastructure improvements are expected to drive rental growth.
The portfolio comprises an estate at Quarrywest in Greystanes, Sydney as well as two Brisbane properties situated in prime industrial locations that benefit from proximity to infrastructure and established employment bases. The properties were recently built with high quality specifications, good clearance, super canopies and strong environmental credentials. The properties are fully occupied with a strong tenant base with long term commitments.
Richard van den Berg, manager of the M&G Real Estate’s core Asia Property strategy, says: “We are pleased for this opportunity to increase our Australian real estate portfolio. Demand for prime logistic assets closer to cities are increasing as retailers are increasing their omnichannel presence. These properties are well positioned to add significant value to our strategies.”
Chiang Ling Ng, CEO and CIO of M&G Real Estate, Asia, comments: “We are delighted to work with Dexus, who has a proven track record and expertise in Australia’s logistics sector. We look forward to developing this strategic partnership and working with them to increase our exposure in Australia.”
M&G Real Estate is the real estate fund management arm of M&G Investments.