Gateway Capital and Cadillac Fairview (CF), the real estate arm of Ontario Teachers’ Pension Plan, have launched Gateway Capital Urban Logistics Partnership, a A$1bn (€619m) partnership to acquire and develop industrial and logistics assets in Australia.
Cadillac Fairview has also taken a minority interest in Gateway Capital, sitting alongside another minority investor, UK-based Grosvenor. Co-founders, Stuart Dawes and Peter McDonald remain the majority shareholders in Sydney-based Gateway Capital.
It has been reported that Cadillac Fairview’s total investment would be up to A$700m, but Gateway Capital declined to comment on the number.
The newly created partnership, known as Gateway Capital Urban Logistics Partnership (GULP) has already identified potential acquisitions and expects to begin deploying capital in coming months. Cadillac Fairview, which will have governance oversight over the club, is the most significant investor in GULP, with co-investments from Gateway Capital.
IPE Real Assets understands that Gateway is currently having discussions with other foreign investors keen to join the club.
Karl Kreppner, regional head of APAC at Cadillac Fairview, said: “Our partnership with Gateway Capital marks our second direct investment in Australia, and we are excited to work alongside such a high-quality management team.”
Last November, Cadillac Fairview formed a joint venture with US-based Hines to develop and acquire up to A$1.5bn of assets in Australia’s emerging build-to-rent sector.
Jun Ando, managing director, APAC at Cadillac Fairview, said he was confident that this venture would mark the first of many direct investments in the industrial and logistics asset class across Asia Pacific as we continue to expand our footprint in the region.”
Stuart Dawes, Gateway Capital co-founder and CEO, said: “We believe strongly in the urban industrial and logistics markets and are confident that our track record and deep experience in these markets will identify assets where we can add value to create attractive core assets and ultimately deliver strong investor returns.”
Peter McDonald, Gateway Capital co-founder and CIO, said: “Never have we witnessed such low vacancy rates in the Australia industrial and logistics sector. This is driven by the supply constrained market, which is further being impacted as new developments are delayed, whilst demand remains strong. This dynamic has led to unprecedented rental growth over the past 24 months, which is expected to continue in the short to medium term.”
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