Frasers, Morgan Stanley seed industrial venture with eight assets
Frasers Property Industrial – controlled by Thai billionaire Charoen Sirivadhanabhakdi – today announced its first Australian capital partnership, choosing Morgan Stanley Real Estate Investing, an arm of New York listed Morgan Stanley.
The entity, Frasers Property Logistics Venture, has been seeded with eight assets, in Brisbane and Sydney, worth a total $600 million.
Each investor will hold a 50 per cent stake,
FPI will assume on funds, property and asset management.
The agreement comes two and a half years since MSREI and Centuria formed a joint venture – the Centuria Prime Logistics Partnership – also seeded with eight assets.
The pair had not long earlier, in March, 2022, formed another partnership for healthcare product.
MSREI also has a partnership with Lendlease, created in 2021 with a $430m portfolio.
FPLV assets
Developed by FPI and with an average age of five years, the FPLV assets include, in Sydney, three assets at Horsley Park: 2, 2A and 4 Johnston Crescent (2A pictured, top), two in Wetherill Park, at 4 and 6 Burilda Close, and 15-19 Muir Road, Chullora.
The other assets, in Brisbane’s Stapylton, are 29 Fairway Street and 24-60 Homestead Drive.
The total lettable area is 188,000 sqm with a blended weighted average lease expiry of 7.7 years.
“This collaboration with MSREI allows us to leverage synergies effectively across our extensive industrial portfolio,” Reini Otter, chief executive officer of FPI, an arm of Singapore based Frasers Limited, said.
It was represented for the off-market sales by Cushman & Wakefield’s Tony Iuliano and Adrian Rowse.
Partnerships, partnerships everywhere
Numerous significant joint ventures have formed in recent years specifically for industrial product.
Last September, ESR, on behalf of the Abu Dhabi Investment Authority, sold an interest in the LOGOS Australian Logistics Venture to Japan’s Hankyu Hanshin through a local subsidiary, Hankyu Hanshin Properties Australia (HHPAUS) – a deal worth $536m.
In 2022 meanwhile, HHPAUS teamed with AsheMorgan for two Sydney CBD assets worth $820m – 60 Margaret St, an office, and the Met Centre, a mall.
PGIM holds several partnerships including one with KM Funds Management which in February paid Stockland $102m for a 9.6ha business park in Brisbane’s Yatala.
That joint venture bought Melbourne’s Central West Business Park nine months earlier, from Dexus – outlaying $92m.
Aware Super and Barings, the new name for Altis, also co-invest in industrial, last August outlaying $600m for an incomplete intermodal facility on 99ha in Melbourne’s north Somerton.
The GPT Group and Austrak Funds Management divested that property.
GPT also has partnership with QuadReal for industrial product, as do, amongst many others, BlackRock and NashCap, following a 2022 agreement.
One of the highest profile industial partnerships was created in 2021 when ESR outlaid $3.8 billion – the highest price paid at the time in one line for an Australian property portfolio – for an 80pc stake in the Blackstone Milestone Logistics Portfolio, with 45 properties across 360ha.
Singapore sovereign wealth fund GIC, behind several partnerships for Australian real estate, holds the balance.
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