Grosvenor’s indirect investment team has made its first investment in the Australian property market.
Alongside Goldman Sachs, the firm has backed Sydney-based property company Propertylink’s launch of a new industrial investment vehicle.
The Propertylink Australian Industrial Partnership (PAIP), currently owns seven industrial assets across several Australian states valued at $100m and has funding and scope to expand to $400m.
Grosvenor Group investment director, Chris Taite, said: “Grosvenor’s Indirect Investment team has completed its first investment in the Australian property market. Grosvenor’s commitment to reinvest indirectly in Australia, backing specialist local third parties, was made following the successful sale of its remaining directly-held proprietary assets and the closure of its Australian office last year.
“As well as being a very interesting market opportunity to invest with high calibre partners, this deal is strategically significant, ensuring a continued exposure to Australia as a key international market.”
Propertylink managing director, Stephen Day, said: “Recent acquisitions have demonstrated our strategic intention to grow our industrial property portfolio nationally.”
PAIP’s assets include properties in Wacol and Archerfield in Brisbane which Propertylink recently acquired from Dexus, with further properties in Sydney, Perth and Melbourne.
“The assets of most interest to us, are those which present the opportunity for Propertylink, with our broad in-house skill base, to add value or to achieve higher yields and total return by taking some calculated lease risk and “sweating the asset” with intensive asset management.
“Usually this is where there is a fundamentally sound asset in a good location, with current or pending vacancy such as traditional multi-let estates and single tenant distribution centres.
“The PAIP industrial strategy is offering great risk adjusted returns in the current climate due to the light capital expenditure requirements, relatively low incentives required to secure tenants and, most importantly, strong capacity to achieve a high proportion of targeted total returns to investors coming from cash distributions from rental income” Day said.
bridget.oconnell@estatesgazette.com
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