PGIM Real Estate has partnered Australian fund manager KM Property Funds to buy a logistics asset in Melbourne for around A$92m (€56.5m).
The pair are acquiring Central West Distribution Centre at Laverton North, situated on 12.1ha land, with some 1.62ha available for potential new development.
Steve Bulloch, managing director of PGIM Real Estate, said that Laverton North presented an opportunity to acquire a large strategic holding with “compelling” future value in Melbourne’s western suburbs.
Nick Crockett, partner, KM Property Funds, told IPE Real Assets: “We’ve got clear objectives for the asset over the next few years in terms of a value-add strategy, and then whether we build a new shed on the [undeveloped] site will be determined by the market and our partner.”
Given that the current leases on the sheds were under-rented, he said there would be good rent reversion which would increase income and value of the investment.
According to the selling agent Tony Luliano of Cushman & Wakefield, current leases were expiring for 52% of the lettable space in the two buildings in 2026. With no further term options that meant that there was “ample opportunity” to reposition the estate in the medium term, to align with market demands and tenant requirements.
To read the latest IPE Real Assets magazine click here.
