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

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

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

27 Distribution Drive, Truganina, VIC (pictured above)

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

50 Foundation Road, Truganina, VIC (pictured above)

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Dexus Gic

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