Adding to a long list of logistics-related deals announced in 2020, Australian diversified property firm, Stockland (ASX:SGP), revealed just before Christmas, that it had formed a capital partnership with a special purpose vehicle advised by J.P. Morgan Asset Management.
The capital partnership aims to establish and actively manage a portfolio of industrial and logistics properties with a target value of AU$1bn.
Stockland’s soon to retire Managing Director and CEO, Mark Steinert said, “We have a clear goal to introduce third party capital with trusted, quality partners to help fast track the delivery of our development pipeline and expand our acquisition capability, and we’re delighted to have partnered with such a highly regarded, international group.”
Stockland Chief Investment Officer, Darren Rehn added, “J.P. Morgan Asset Management has a deep understanding of investment markets and the Australian logistics sector. As one of Australia’s largest logistics owner-operators, we can leverage our industry expertise and relationships to find commercially attractive investment prospects for this partnership.”
The portfolio will be seeded with two properties recently acquired by Stockland. The properties, both in the suburbs of Melbourne were acquired for a combined value of c.AU$110m.
The partnership will then purchase another AU100m worth of assets from third parties and a further AU$200m of assets will be purchased from Stockland’s existing logistics portfolio. These transactions are expected to close in mid to late 2021, subject to regulatory approvals and will take the initial portfolio to AU$400m. The partnership hopes to then build the portfolio towards the AU$1bn target over the next three years.
Speaking on behalf of JP Morgan, David Chen, J.P. Morgan – Global Alternatives’ Chief Investment Officer for Real Estate Asia Pacific, said, “We’re excited to form this long-term logistics partnership with Stockland. Stockland is uniquely well-positioned to capitalise on the growing demand for logistics across many supply-constrained markets and brings strong relationships with occupiers and end-users.”
The joint venture will primarily target established assets with reliable income streams. Assets will primarily be purchased on market, with a focus on the eastern seaboard of Australia.
Stockland (ASX: SGP) was founded in 1952 and has grown to become one of Australia’s largest diversified property groups. The company owns, develops, and manages a large portfolio of shopping centres, residential communities, workplace and logistic assets and retirement living villages across Australia.
Managing Director and CEO, Mark Steinert, announced his retirement in June 2020 and will be replaced in June 2021 by Tarun Gupta, the former Group CFO of rival Australian property giant, Lendlease.