Partners and Realterm boost local holdings to $90m
The pair are among the foreign groups muscling in to the local industrial sector.
Swiss-based Partners Group has teamed with global investment manager Realterm to snap up an industrial outdoor storage facility in the Sydney suburb of Fairfield for $28m.
The pair’s purchase of 311 The Horsley Drive marked the second acquisition of their transportation logistics real estate joint venture in Australia, and took the value of their holdings to about $90m as more groups enter the market.
The pair entered the Australian market at the beginning of the year with the purchase of 77 Governor Macquarie Drive, Chipping Norton, a 41,490sq m IOS facility in Sydney’s southwest. They picked that site up for $62m from a local family and bought the latest site from a private vendor.
The latest acquisition in Fairfield is in a tightly held industrial market. The site sports a 3609sq m warehouse and about 1.7ha of secure storage space. The main warehouse has a medium internal clearance with seven raised docks and one level access point in addition to office and amenities.
“The property’s location is highly advantageous for transportation and logistics operations and sits in an area of Sydney currently characterised by its limited supply and low vacancy, offering a rare and coveted opportunity,” said Toni Ryan, fund manager Australia at Realterm. “We look forward to our continued expansion in Australia and are committed to broadening our presence further in this active and highly sought-after market.”
The site in Sydney’s central west is easily accessible to the M4 and M5 motorways, connecting to the broader Sydney market and Port Botany. It is also near the Yennora, Chullora and Enfield rail intermodals.
“The acquisition is a great example of how we work closely with our local agent network to secure off-market opportunities, a strategy that is enabling us to secure these IOS sites of scale in tightly held, infill markets”, said Charlotte Brabant, head of investments, Australia.
Realterm worked with CBRE’s Elijah Shakir on the acquisition, where Partners Group sees significant value-add potential.
“Industrial outdoor storage represents a unique and emerging last-mile urban logistics strategy in which we have strong thematic conviction, and we will continue to seek opportunities to expand in Australia,” said Joe Chien, managing director of private real estate Asia at Partners Group.
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