The Altis Real Estate Equity Partnership 4 (AREEP4) fund has acquired an industrial site in northeastern Australia for A$32.2m (€21m).

Altis Property Partners, a Barings company, acquired the 12,034sqm Eagle Farm complex asset on the outskirts of Brisbane, Queensland on behalf of AREEP4 to grow the fund’s industrial footprint. The property at 112 Cullen Avenue is located within the Northshore Hamilton Priority Development area.

James King, director of investment management and capital at Altis told IPE Real Assets that this was the fund’s second industrial acquisition. It acquired an industrial asset in Perth in the first quarter of last year.

“The diversified fund is targeting industrial, large-format retail, and counter-cyclical office,” he said. “However, the primary sector focus is industrial and, as such, the fund can have up to 100% weighting to industrial,” he said.

King said Altis had A$600m of committed equity to curate a portfolio of more than A$1.2bn for its industrial value-add fund strategies, including AREEP4, an eight-year closed-end fund.

Gareth Price, director of capital transactions at Altis, said: “One of the key characteristics which attracted us to this asset is the benefit from future infrastructure investment in the precinct.

“The Northshore Hamilton Priority Development area will undergo a major transformation into a vibrant, mixed-use precinct. This new industrial acquisition fits within our strategy of buying in core markets, centrally and conveniently located to employment hubs, with access to key infrastructure.”

Shaun Hannah, executive director at Altis, said: “We are at a key juncture in this new real estate cycle, having to adjust to the higher-interest-rate environment and construction cost pressures.

“One of our biggest challenges is filtering the current heightened volume of deal flow to find the best relative value opportunities for our investors, particularly in the industrial and residential sectors.”

To read the latest edition of the latest IPE Real Assets magazine click here.