Dexus joins with Singapore sovereign wealth fund for logistics focused unlisted REIT

Dexus and GIC, Singapore’s sovereign wealth fund, have joined forces for a new unlisted trust.

The circa $2 billion fund will be known as the Dexus Australian Logistics Trust (DALT) and will look to invest in logistics properties in Australia.

The venture will be with a $1.4 billion logistics portfolio of assets mostly located in Sydney and Melbourne.

The weighted average lease expiry of the portfolio is 5.3 years with occupancy at 98%.

DALT will also add three further sites with development potential and a total future completion value of $0.5 billion.

Subject to FIRB approval, GIC will be DALT’s foundation investor, taking an initial 25% investment in the core portfolio, with put and call rights to acquire an additional 24% by June 2020.

Lee Kok Sun, Chief Investment Officer, Real Estate, said: “This investment reflects GIC’s confidence in the long-term potential of Australia’s logistics sector.

“We believe the structural and consumption growth in Australia, particularly from favourable demographics and growth in e-commerce, will continue to drive demand for logistics properties.

“This portfolio of quality assets in strong locations is well-positioned to capitalise on this and generate steady income over the long term.

“We look forward to partnering Dexus, a leading manager and developer of industrial properties in Australia, to establish and scale this venture.”

4 Turnbull Close, Greystanes, NSW (pictured above)

27 Distribution Drive, Truganina, VIC (pictured above)

50 Foundation Road, Truganina, VIC (pictured above)