Industrial developer Logos is procuring a stake in its A$3 billion ($2 billion) Australian portfolio in what might be the largest logistics property deal Down Below in two years.
The transfer by Sydney-based Logos is alleged to be giving the Abu Dhabi Funding Authority a chance to money out of a portion of the sovereign wealth fund’s funding within the 10-asset portfolio.
A consultant from Cushman & Wakefield confirmed to Mingtiandi on Monday that Logos had tapped the true property consultancy to market the stake, with information of the potential sale having first been reported by the Australian Enterprise Assessment.
The proposed disposal, which analysts see doubtlessly setting a brand new customary for the worth of logistics properties in Australia, offers buyers an opportunity at proudly owning a stake in a main logistics improvement close to Sydney airport together with different industrial property.
Logos, which turned a unit of ESR final yr as a part of the Hong Kong-listed agency’s acquisition of ARA Asset Administration, had arrange the Logos Australia Logistics Enterprise with ADIA in November 2014 to amass and develop property within the nation.
Tony Iuliano, worldwide director and head of commercial and logistics for Australia and New Zealand at Cushman & Wakefield, alongside together with his colleague, Gordon Marsden, who heads Asia Pacific capital markets for the corporate, are main advertising of the portfolio, based on an company consultant who declined to remark additional. Sources at Logos additionally declined to touch upon the deal.
The Emirati investor made a further fairness dedication to LALV as just lately as final March, with Logos saying the recent money would doubtlessly broaden the gross asset worth of the JV portfolio to greater than A$5 billion.
On the time of ADIA’s top-up final yr, the LALV portfolio consisted of 9 massive, multi-tenanted logistics estates with a complete finish worth of A$3.7 billion, together with a significant stake in a web site in Mascot, close to Sydney Airport, acquired in a deal introduced in October 2021.
The 13.8 hectare (9.4 acre) airport web site was bought from Qantas Airways for A$802 million by a consortium of LALV and native pension fund AustralianSuper for improvement right into a four-level logistics hub estimated to be price A$2 billion upon completion.
The airport deal was introduced three months after Logos, with backing from AustralianSuper, Canada’s Ivanhoe Cambridge, NSW Treasury Company and France’s AXA IM Alts, added 243 hectares to its portfolio by buying the Moorebank Logistics Park in Sydney for A$1.7 billion.
In August of final yr, 5 months after ADIA’s supplemental dedication to the LALV car, Logos introduced that it had bought a further 7,956 sq. metre (85,638 sq. foot) web site subsequent to the Mascot plot for use as a part of a brand new Qantas coaching centre, which was stated to be price almost A$40 million.
Buyers energetic within the Australian market instructed Mingtiandi that the sale of ADIA’s stake within the Logos portfolio will function a well being verify on the nation’s shed market after Blackstone’s A$3.8 billion (then $2.9 billion) sale of the the Milestone Logistics portfolio to ESR and Singapore sovereign wealth fund GIC in 2021.
The Milestone buy, together with properties in Sydney, Melbourne, Brisbane, Adelaide and Perth, added 45 property spanning 1.4 million sq. metres of gross ground space to ESR’s Australian holdings.
In an announcement in June 2021, ESR famous that the Milestone acquisition was made at round a 4.5 % cap fee, with a report by property consultancy Colliers indicating that industrial yields in Sydney averaged between 4 % and 5 % in the course of the fourth quarter.
US-based Blackstone had marketed the Milestone portfolio by means of a two-stage tender course of that attracted 10 first-round bids. The second spherical featured Logos, AXA Funding Managers of France, Australia’s Dexus and Singapore’s Mapletree making separate competing presents, earlier than Logos and AXA reportedly joined forces.