GPT Group and QuadReal Property Group have announced a new Australian logistics joint venture focused on urban infill and middle ring locations.
The new joint venture will be known as GPT QuadReal Logistics Trust 2 (GQLT2) and will be seeded with approximately $460 million logistics assets located in the east coast.
Once established, the joint venture will target further growth deployment of $500 million, focusing on acquisitions of stabilised, core plus opportunities in major east coast markets.
GQLT2 will serve as the primary vehicle for QuadReal to scale its Australian logistics investments and will be operated and managed by GPT.
GPT will sell down a number of balance sheet assets to seed the partnership at book value (based on independent valuations as at 31 December 2024) and will retain a 20 per cent co-investment interest.
Following the transaction, net proceeds of approximately $410 million will be used by the group to reduce gearing until re-invested.
QuadReal’s total commitment for an 80 per cent stake in the partnership is approximately $400 million.
QuadReal’s Managing Director, Asia, Nat Miller said, “QuadReal is excited to expand its strategic investments in Australia with a trusted partner like GPT. The transaction has strong market fundamentals and reflects our high conviction investment strategy which seeks to build portfolios that are resilient across economic cycles.”
GPT’s Chief Executive Officer and Managing Director, Russell Proutt said, “The formation of GQLT2 aligns with our strategy to meaningfully invest and grow with our partners by designing and pursuing compelling investment programs. We are pleased to have been able to activate the Partnership’s formation by providing a foundational portfolio of assets from our direct property holdings. GQLT2 builds upon the established relationship between our organisations that spans the logistics and living sectors, and we look forward to delivering on its strategy.”
Implementation of the transaction is targeted for completion by July 2025 and is subject to FIRB approvals.