ADIA boosts exposure to industrial fund

Multi-level industrial product the LOGOS Australian Logistics Venture intends to develop at Mascot.

The Abu Dhabi Investment Authority will tip over a billion dollars into the LOGOS Australian Logistics Venture, created with LOGOS, the manager, in 2014.

The deal will see the fund capacity grow to more than $5 billion.

The entity presently holds nine Australian and New Zealand assets worth a total of $3.7b.

Last October, for the trust, and part backed by AustralianSuper, LOGOS paid Qantas $802 million for a portfolio of investments and development sites covering 13.8 hectares around Kingsford Smith Airport, at Mascot (image, top).

LALV to smash $5b

With a high Weighted Average Lease Expiry is 9.3 years, LALV holds Asahi Beverages, DHL, H&M, Hilton Foods, Toll and Woolworths amongst is tenant customers.

“We are very pleased to extend our relationship with ADIA, following a very successful initial investment period,” LOGOS head of funds management, Australia and New Zealand, Sean Singh, said (story continues below).

“This has seen LALV deliver strong returns while building one of Australia’s highest quality logistics portfolios, benefiting from LOGOS’ significant development pipeline and leveraging its tenant customer relationships in the Asia-Pacific region”.

For ADIA, the investment marks a reweighting to Australian industrial product, coming six months since its Harina Company Limited, with the Canada Pension Investment Board and AMP Life Property Fund, banked $2.2b selling an 80pc interest in Gold Coast’s Pacific Fair and a half share of Sydney’s Macquarie Centre.

Six weeks ago, the manager sold a 50pc stake in Sydney’s Darling Quarter, also known as Commonwealth Bank Place, to Allianz Real Estate Investors and the National Pension Service League of Korea, for $630m reflecting a four per cent yield.

Including ADIA’s latest investment, LOGOS manages assets in Australia and New Zealand worth a total of $14.3b.

Another trust it retains, with KKR and Mubadala Investments, last month paid c$200m for a 21.56ha site at Huntingwood, west of Sydney, and $40m for an ex-school and neighbouring temple, in Melbourne’s north Preston, set to make way for a business park.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of