Chris Judd flagged as chief of $3.5bn industrial property company set for sale or listing

Chris Judd has been working as a consultant for Blackstone since April. Picture: Bob Finlayson.

Well-regarded Australian real estate executive Chris Judd is believed to be in line to become the chief executive of the $3.5bn industrial property company that is being earmarked for a listing by Blackstone.

The New York-based private equity group is progressing plans for a sale or initial public offering, with advisers hired, including Morgan Stanley and JPMorgan which are working on the float.

Blackstone is also believed to be amid a process to select a board for the potential IPO prospect.

Mr Judd has been working as a consultant for Blackstone since April.

He spent more than 13 years at AMP Capital as its head of Real Estate Funds Management, overseeing an Australian and New Zealand portfolio worth $20.3bn.

Prior to that time, he also worked as a fund manager at Multiplex, which is now part of Brookfield.

Opinion is divided as to whether Blackstone divests of its valuable property portfolio through a sale or a listing.

Some market experts believe there is a strong possibility that Blackstone would achieve a higher price through a trade sale, suggesting there would be buyers prepared to pay a yield of between 4 and 5 per cent for the portfolio.

A 4 per cent yield would equate to a price just south of $4bn and one that would make the assets out of reach for equity investors.

Industrial property is in strong demand as the tenants of storage sheds prosper from the growing amount of online trade due to the global pandemic and as investors search for safe earnings streams amid a low interest rate environment.

As reported by The Australian on Monday, Blackstone plans to name the portfolio Milestone Logistics Group and should it head to the ASX, it would likely shape up to be one of the largest Australian IPOs for 2021, raising at least $1bn from investors.

Working on the direct sale, which is pitched as the largest globally in the industrial space this year, are JLL and Eastdil Secured.

Major Australian investors such as Charter Hall and Dexus Property Group are likely to line up for the assets, along with offshore investors such as Singaporean and Canadian pension funds.