Ivanhoe Cambridge and Logos Property, subsidized through ARA Asset Management, have acquired one in northern Melbourne from local real estate investor Growthpoint for A$50.2 million ($36.4 million), announced by corporations on August 24.
The Canadian pension fund’s real estate investor and Sydney-based spouse are scheduled to complete the acquisition of the Broadmeadows commercial suburb on September 4, and the structure is expected to start early at the 120,000-square-foot (1291669 square-foot) complex. 2021.
“This is a strategic acquisition for our business, as several of our current consumers will expand north of Melbourne, a region that has long experienced a limited source of premium logistics assets,” said Logos’ director for Australia and New Zealand. Darren Searle said in a statement.
Logos will act as an administrator and lead the 250,000-meter site refurbishment, and the allocation is expected to be valued at more than A$230 million when completed. The logistics developer and fund manager plans to build a series of laudable warehouses on site, with a length of between 15,000 and 50,000 square meters, which will meet the e-commerce, distribution, food and refrigerated garages of corporate customers.
Located at 120 Northcorp Boulevard, the site caters to The Western Ring Road, The Tullamarine Highway and Hume Highway Interchange.
The acquisition of Logos of what is lately a Woolworths distribution centre is its acquisition moment in Melbourne this month after the company acquired one in the Epping suburb of the Victorian capital last August, with plans to expand a 46,240 square meter distribution centre.
Also this month, the storage specialist spent A$170 million to get a couple of logistics services near Sydney from TCorp, an investment control department of the New South Wales government.
Earlier this year, the company had decided in the past progression sites in New South Wales and Queensland, as well as in Auckland, New Zealand, in addition to a previous acquisition in Melbourne.
Last week, Logos added an eighth country to its APAC-centric portfolio by announcing the formation of a $350 million Vietnamese joint venture with an anonymous sovereign wealth fund. This initiative is expected to announce the acquisition of the first in the coming weeks.
ARA Asset Management of Singapore acquired a majority stake in the Sydney-based developer in March this year, raising the company’s reputation as “the best-in-class logistics platform” as a motivator of the deal.
Growthpoint stated that the proceeds from the sale of Melbourne to Logos will be used to pay for notable debts and CBRE has helped facilitate the transaction.
“After reviewing our features for the site, we sold this asset because undertaking a prolonged progression allocation outweighed our appetite for threats and we returned to the existing operating environment,” said Timothy Collyer, Managing Director of Growthpoint.
Logos and Ivanhoe Cambridge, a branch of the Caisse de dépét et location du Québec, which manages the public pension budget for the Canadian province, have collaborated on the afterlife in a series of logistics investments in Asia-Pacific, with the pension fund manager with a stake in the warehouse specialist.
In April, Ivanhoe Cambridge and Dutch institutional investor Bouwinvest partnered with Logos for an $800 million joint venture in China to expand new logistics projects in major cities on the continent.
The previous agreement this year marked the newest in a series of agreements between Logos and Ivanhoe Cambridge that began in 2015, with the two corporations forming a $400 million Joint Venture focused on China with CBRE Global Investors. Then, in 2016, the Quebec pension fund committed $110 million to Logos’ Southeast Asia Venture, before partnering with CPPIB a year later to charge another $484 million into the strategy as it expanded into Indonesia.
Ivanhoe Cambridge had C$64 billion ($47.9 billion) of international real estate assets at the end of 2019, according to a corporate money report.
Ivanhoe Cambridge and its counterparts in other Canadian provinces conform to ubiquitous figures in warehouse transactions in Asia-Pacific, as the country’s pension budget relies on logistical investments in genuine real estate as a reliable source of return.
“We remain focused on building a giant portfolio in Sydney and Melbourne, which has shown remarkable resistance to the COVID-19 pandemic,” said George Agethen, Ivanhoe Cambridge’s senior vice president for the APAC region.
Ontario pension fund manager OMERS acquired a 7% stake in Warburg Pincus’ 7% logistics developer esmetre after taking a $1.6 billion stake in the company’s IPO in 2019.
The Agency supported logistics investments in mainland China, Japan and Korea, adding a $2.290 million European logistics joint venture with LPG in 2018 and making a $700 million investment in Japan’s third LPG logistics fund in the same year.