QuadReal Property Group has committed about A$400m (€229.5m) to a new partnership with Australian property group GPT.
The GPT QuadReal Logistics Trust 2 (GQLT2) partnership will become the primary vehicle for QuadReal to scale its Australian logistics investments. QuadReal will have an 80% stake in the trust.
The partnership will be seeded with approximately A$460m of stabilised logistics assets located in east coast urban infill and middle ring locations.
GPT will sell down several balance sheet assets to seed the partnership and will retain a 20% co-investment interest.
Following the transaction, net proceeds of approximately A$410m will be used by GPT to reduce gearing until re-invested.
GPT said once established, the partnership would target further growth deployment of A$500m, focusing on acquisitions of stabilised, core-plus opportunities in major east coast markets.
Canada’s QuadReal initially partnered with GPT in 2021 to invest in Australian logistics assets through a 50:50 joint venture, targeting an investment of A$1bn. They doubled the size of the logistics joint venture the following year.
Nat Miller, managing director at QuadReal, Asia, said: “QuadReal is excited to expand its strategic investments in Australia with a trusted partner like GPT. The transaction has strong market fundamentals and reflects our high conviction investment strategy which seeks to build portfolios that are resilient across economic cycles.”
Russell Proutt, GPT’s CEO and managing director, said: “The formation of GQLT2 aligns with our strategy to meaningfully invest and grow with our partners by designing and pursuing compelling investment programmes.
“We are pleased to have been able to activate the partnership’s formation by providing a foundational portfolio of assets from our direct property holdings. GQLT2 builds upon the established relationship between our organisations that spans the logistics and living sectors, and we look forward to delivering on its strategy.”
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