Canada’s QuadReal Real Estate has upsized its commitment to the GPT QuadReal Logistics Trust from A$800m to A$1bn (A$495m to €619.3m).

QuadReal formed the 50-50 joint venture with GPT Group to establish a prime Australian logistics portfolio.

“We have already committed 53% of the initial A$800m target across five deals in Melbourne and Brisbane secured this year, said GPT’s CEO, Bob Johnston.

In an earnings call, Johnston told analysts the increased capital commitment from the QuadReal partnership would accelerate the build-out of the logistics pipelines over the next few years.

Said Nick Harris, GPT’s head of funds management: “This is a new relationship with QuadReal and is our first foray in the logistics sector in funds management.

“As at 30 June, we had committed A$346m in this partnership and it represents 3% of our assets under management in the funds management business, complementing our existing funds platform in the office and retail sectors.“

GPT, a diversified property group, is increasingly pivoting to logistics/industrial, aiming to grow its logistics portfolio to around A$5bn.

Johnson said over the weekend, the group had entered an exclusive position to acquire a portfolio of long-WALE logistics industrial and office assets for approximately A$800m. “We will commence a six-week due diligence period in coming days,” he said.

If it proceeds, he said the transaction would go on the GPT balance sheet.

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