JP Morgan Asset Management (JPMAM) and Australian diversified property group Stockland have teamed up to buy up to A$1bn (€619m) industrial assets.
The joint venture will target acquisition of assets with income streams, purchased on-market and primarily located along the high-performing eastern seaboard.
Darren Rehn, Stockland chief investment officer, said: “The initial portfolio will comprise assets valued at A$400m, and we will work with JP Morgan Asset Management to grow this partnership to more than A$1bn over the next three years.”
David Chen, JP Morgan’s global alternatives’ chief investment officer for real estate, Asia-Pacific, said: “Stockland is uniquely well-positioned to capitalise on growing demand for logistics across many supply-constrained markets, and brings strong relationships with occupiers and end-users.”
JPMAM has made the investment on behalf of one of its special purpose vehicles.
Stockland managing director and CEO, Mark Steinert, said the partners had a “clear goal” to introduce third-party capital with trusted, quality partners to help fast-track delivery of Stockland’s development pipeline and to expand it acquisition capability.
“Forming relationships with capital partners like this enables us to scale our management and development capabilities, grow assets under management more quickly, and enhance growth to achieve returns in line with or above our investment hurdles,” Steinert said.
JPMAM is Stockland’s first significant global capital partner, although it has worked with a Thai group, Supalai and a local group Fife Capital.
The company made a switch in its corporate strategy last year to take on third party capital to expand its fund management business.
It will operate and manage the assets, and receive a fee for these services.
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