GPT QuadReal Logistics Trust acquire fund-through development in Keysborough1 July 2021
The GPT Group today announced GPT QuadReal Logistics Trust’s acquisition of a logistics development in Keysborough, Melbourne, on a fund-through basis comprising a targeted 60,640 square metre estate across three high quality facilities.
The joint venture will acquire the development, to be known as Keylink, from Cadence Property Group. The estate has an expected end value in excess of $128 million, and construction will commence on a speculative basis to take advantage of the tightly held market with limited upcoming supply. Texco Construction has been engaged to deliver the three warehouses with settlement of the land and works due to commence in the third quarter of 2021.
Matthew Faddy, Head of Office & Logistics at GPT said: “GPT are pleased to acquire this well-located logistics development in Melbourne’s desirable South East with our partner QuadReal. As investment demand for quality assets continues to outstrip supply, our growth in the Logistics sector is being delivered through both astute acquisitions and build-to-core developments, and we continue to capitalise on our strong relationships with occupiers to deliver benefits for GPT and our partners.”
Charlie Buxton, Managing Director of Cadence said: “It’s a privilege to work with GPT and QuadReal on this exciting project. With prime vacancy in Melbourne’s South-Eastern industrial precinct sitting below 1 per cent, the market is severely undersupplied by quality logistics accommodation with current demand significantly outstripping supply. This project should come on at a great time to satisfy some of that demand with strong tenant enquiry already evident at this early stage.”
This acquisition in a prime Melbourne market complements GPT’s other active developments in Victoria, including a 70,000 square metre fund-through development currently underway at Truganina, fully leased to HB Commerce for ten years from completion. At the Gateway Logistics Hub in Truganina, construction of a 29,800 square metre facility leased to The Hut Group is progressing well, while a 24,000 square metre speculative development is due for completion in the second half of the year.
GPT and QuadReal announced a strategic partnership in February 2021, with the 50:50 joint venture targeting an initial investment of $800 million through the acquisition and development of Australian prime logistics assets. The joint-venture has also recently secured a parcel of land in Coulson Street, Wacol, Brisbane, taking the joint venture to over 40 per cent of its targeted investment with further opportunities being pursued. The site provides for a 17,380 square metre facility which will have an expected development end value in excess of $40 million, located within close proximity to the Centenary and Ipswich Motorways.
The Logistics sector continues to benefit from structural tailwinds, with increasing investment in the supply chain, along with the growth of e-commerce, driving high demand from tenants for a range of industrial uses.