M&G pays $440m for stake in two logistics estates
M&G Real Estate bought a 49.9 per cent stake in two east coast logistics estates from Stockland.
The London based fund manager is outlaying $438 million for the assets, at Willawong in Brisbane (pictured, top) and Sydney’s Warwick Farm.
The deal brings to c154,000 square metres the lettable area it controls as part of the M&G Asia Property Strategy.
Last week realestatesource.com.au reported M&G sold an inner-city Melbourne hotel to a Sydney-based co-living outfit.
Industrial partnership
Coopers Paddock comprises four warehouses completed in 2017 with 51,102 square metres of gross lettable area at Warwick Farm, about 30 kilometres south-west of town.
Daikin is among the occupiers.
Stockland acquired the 11-hectare site from the Australian Turf Club for $17.2m in 2014.
The end-value when it was completed in 2018 was $77m.
It bought out its joint venture partner’s interest in 2022 to assume full ownership.
M&G is paying c$164m for the interest.
Willawong Distribution Centre, in Brisbane’s south, contains seven warehouses developed between 2019 and this year (continues below).
With a total 103,045 sqm of lettable area, it neighbours Queensland’s principal intermodal freight hub.
This stake is worth c$275m.
“Logistics has become one of the most attractive segments of the real estate market, underpinned by long-term structural trends including e-commerce growth, evolving supply chains and population growth,” M&G Real Estate Asia chief executive and chief investment officer Jing Dong (JD) Lai said.
“These assets are well positioned within established distribution corridors and add further scale to our Australian logistics portfolio,” he added.
“Together with Stockland, we’re building a portfolio designed to deliver resilient income today while investing in assets we believe will remain relevant for decades to come,” according to the executive.
The deal comes a week since realestatesource.com.au reported Singapore listed AIMS APAC REIT acquired its maiden Perth industrial investments.
The Buckeridge Group of Companies was that seller (and former occupier).
ESR and Frasers Property Industrial also this month traded five major Melbourne logistics investments.
That outlay was c$277m.
ESR and FPI are Singapore based too.
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