A Barings-led consortium including Aware Super and Rest Super is to acquire the Moorabbin Airport Corporation from Goodman Group for A$1.5bn (€920m).
Moorabbin Airport, in Melbourne, provides flight training, charter and maintenance operations under a 71-year leasehold with the Australian governmen and includes industrial and logistics facilities, retail, offices and ground-lease interests.
Barings Real Estate Australia will assume asset management responsibilities, including overseeing future development across the mixed-use precinct.
Shaun Hannah, executive director at Barings Real Estate Australia, said Moorabbin Airport consisted of a 294-hectare strategic landholding with diversified uses, strong income, development potential, and exposure to a tightly supplied, high-demand Melbourne market.
“The acquisition of this portfolio is the latest example of Barings’ ongoing positive outlook for the industrial sector in Australia and continues our investment strategy of targeting well-located precincts with significant underlying value and long-term development potential,” he said.
“Importantly, Moorabbin Airport has a long-standing role as a critical aviation hub, supporting flight training, charter and maintenance operations, and we recognise the importance of preserving and supporting these aviation activities as part of the precinct’s future.
“Barings is confident that Moorabbin Airport will be another strong addition to the Australian portfolio, providing scale in a tightly held infill market, while maintaining the balance between its aviation function and broader precinct uses.”
Hannah said Barings had a strong track record with complex airport and industrial assets, including with Bankstown and Camden Airports in the Sydney area.
Anjana Moran, Aware Super senior portfolio manager for property, said: “Aware Super is proud to invest in Moorabbin Airport on behalf of its 1.3 million members, and we look forward to working with Barings as an experienced and trusted investment manager and other consortium partners to unlock further value through new growth initiatives and development activities.”
Andrew Bambrook, head of investments for real assets at Rest, said: “The asset offers diversified income and long-term development potential in a supply-constrained Melbourne precinct, supporting Rest’s focus on resilient, long-term returns for our more than two million members.”
Jason Little, CEO Australia at Goodman, said: “Goodman acquired Moorabbin Airport in 2011, and since then has invested significantly in the airport operations and surrounding land to create a thriving precinct. The area comprises high-quality, well-located assets with strong underlying fundamentals, reflecting the value created through Goodman’s active management and development over time.”
