JP Morgan Asset Management has sold a portfolio of industrial assets in Sydney to AMP Capital Diversified Property Fund (ADPF) for AUD250m (€168m).
The asset management arm of the US investment bank inherited the portfolio from Aviva Investors when it bought the latter’s platforms in Australia, Japan and Singapore in late 2014, paving the way for its expansion into Asia Pacific.
The deal is the largest single industrial transaction undertaken by ADPF, which has AUD4.7bn in assets under management.
AMP Capital said the 150,000sqm portfolio, in a mix of core and infill locations, had future urbanisation potential due to its proximity to existing and proposed infrastructure.
It said the six assets, in Sydney’s western suburbs, were located within land-constrained markets, supporting future rental and capital-growth prospects.
Kylie O’Connor, fund manager of the ADPF, said the acquisition was consistent with its strategy to increase its weighting to the industrial sector and its exposure to Sydney.
“Our research shows the Sydney industrial market will continue to perform due to the strengthening state economy, with both the market and assets poised to benefit from ongoing significant infrastructure investment,” she said.
Over the next five years, she added, the fund will remain focused on executing its strategy to become the pre-eminent wholesale diversified fund in the Australian market.
The fund’s increased investment in industrial property comes as AMP Capital continues to build its industrial capabilities with the recent appointment of Andrew Quade as head of industrial asset management.