Arrow Capital Partners has launched a new $1bn fund to invest in industrial property with a partner that is believed to be private equity firm Cerberus Capital Management.
It comes after the pair have already made some smaller investments in the Australian finance sector and last year formed a joint venture to manage EUR2bn of European industrial assets.
After managing real estate in Europe and the Asia Pacific region, Arrow Capital Partners is now launching the SIRE (Strategic Industrial Real Estate) Australia fund.
On its acquisition list will be core, core plus industrial and logistics assets yielding more than 5 per cent as well as vacant land with lease potential and land to accommodate a build to own strategy.
The fund will focus on urban infill locations across Australia’s major
eastern seaboard markets and strategic transport hubs that are benefitting from structural trends
in urbanisation and e-commerce growth.
Arrow has been one of the largest owners of industrial property and urban logistics assets in Australia and Europe for the past 15 years.
“As an investor and operator in real estate, we have flexibility around the type of acquisitions we can target,” said Kurt Wilkinson, partner at Arrow Capital Partners.
“We have a longer-term investment horizon than most funds, and have a flexible approach to the way we consider our investments.”
Mr Wilkinson said the fund was already well advanced on three acquisitions totalling over $100 million.
It also had an extensive pipeline of opportunities, including partnering with local developers seeking a long-term capital partner to help deliver assets.”
“Following the successful launch of SIRE Europe, where we now have over $400 million worth of assets in just 12 months, we are excited to be launching the same strategy here in Australia,” said Arrow managing partner Martyn McCarthy.
“We will create value by acquiring and aggregating single assets ranging from $5 million to $50 million and portfolios between $50 million to in excess of $500 million in
markets where the supply – demand dynamics support above average rental growth, and where targeted capex will enhance the assets attraction to new and existing tenants.”
With investor partners such as AMB Capital, one of Australia’s largest family offices, over the last 2 years, Arrow has transacted on and managed more than $3 billion of investments across Asia and Europe, and has a team based out of 6 offices globally.
Arrow targets equity and debt investment opportunities, specialising in cross-border transactions where it can use its platform and balance sheet to invest with its US and Asia-Pacific capital partners into Europe, as well as European and US investors into the Asia-Pacific region.
The Arrow Capital Partners the international investor and operator of real estate in Asia-Pacific and Europe has capital to acquire $1 billion portfolio of Australian industrial and urban logistics property.
The move was flagged by DataRoom on Friday.
The new fund comes after The Australian reported last year that Arrow was circling assets such as The Zenith building on Sydney’s north shore, worth about $450m.
Debt capital markets proceeds up
Debt capital markets proceeds for Australia increased more than 16 per cent in 2024 compared to the previous year as corporates became more confident that inflation was being reined in.
Jarden to lobby for joint Australia-NZ share trading index
Growing concerns about liquidity on the Australia and New Zealand stock exchanges have prompted plans to lobby governments for a combined trans-Tasman share trading index.