PGGM and its Australian partner, Charter Hall Group, have sold an industrial site in the southern Sydney suburb of Kingsgrove to Blackstone for A$57.5m (€35m).

The asset, comprising two freestanding office and warehouse buildings, was held in a wholesale partnership between the Dutch pension manager and Charter Hall, established in 2020, and had a strategy to build up a A$800m portfolio.

Its portfolio now holds logistics and industrial assets, valued at more than A$500m in Sydney and other capital cities. It has chosen to sell the Kingsgrove site to focus on larger developments in Sydney and Brisbane.

Blackstone has traded in and out of the Australian industrial/logistics sector over the years and since selling its Milestone Logistics portfolio to ESR and GIC for A$3.8bn in 2021, it has been assembling a portfolio of smaller assets.

To read the latest IPE Real Assets magazine click here.