M&G Real Estate has acquired Australia’s sovereign wealth fund’s 50% stake in the Dexus Industrial Partnership for an undisclosed sum.
Dexus and the Future Fund formed the partnership in 2014 to own a portfolio of industrial properties. The portfolio comprises an estate at Quarrywest in Greystanes in Sydney’s west and two Brisbane properties.
A source told IPE Real Assets that Dexus had a value of AUD167m (€103.7m), as of 30 June 2018, on its book for its half share of the portfolio.
The source added: “M&G’s investment is priced at a premium to the 30 June built up book value and is in line with the December 2018 valuations.”
The latest deal is M&G Real Estate’s third acquisition in Australia this year following 40 Mount Street in Sydney and 80 Ann Street in Brisbane.
Including this transaction, the £31.70bn (€35.15bn) property manager said its total exposure to Australian real estate has risen to AUD2.37bn.
Richard van den Berg, manager of the M&G Real Estate’s core Asia Property strategy, said: “Demand for prime logistic assets closer to cities is increasing as retailers are increasing their omni channel presence. These properties are well positioned to add significant value to our strategies.”
Ng Chiang Ling, CEO and CIO of M&G Real Estate, Asia, added that M&G looks forward to developing is strategic partnership with Dexus and working with them to increase its exposure in Australia.
Dexus’ executive general manager, funds management, Deborah Coakley said: “We are delighted to welcome M&G Real Estate onto our funds management platform and look forward to facilitating their industrial property growth mandate.”
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