Cbus Super takes stake in Perth’s Jandakot Airport as part of $1.3bn Dexus purchase

Superannuation heavyweight Cbus Super has taken a one-third interest in Perth’s $1.3bn Jandakot Airport, adding to its roster of infrastructure investments.

Cbus Super has taken a one-third interest in Perth’s $1.3bn Jandakot Airport.

Superannuation heavyweight Cbus Super has taken a one-third interest in Perth’s $1.3bn Jandakot Airport, adding to its roster of infrastructure investments, which include an interest in the city’s other airport.

The $67bn fund is buying real assets as the price of key transport hubs and surrounding land soars on the back of low interest rates.

Airport property is selling at a massive premium. Rival fund manager Logos last year bought a major land parcel next to Sydney Airport from Qantas for $802m. It will develop a $2bn-plus logistics hub at the airport with the backing of AustralianSuper and Middle Eastern fund ADIA.

The Jandakot purchase is partly a bet on the recovery from the coronavirus crisis and an expected reopening of Western Australian borders.

In September, Dexus stamped its authority on the industrial property market, buying Perth’s Jandakot airport and surrounding parcels for $1.3bn as part of a broader push into the area.

The company teamed up with its then recently acquired Industria REIT to buy both the airport and surrounding properties that it will develop to create a major logistics hub.

The move by Cbus Super reflects the ability of Dexus to win backers for its expanding funds management business. Dexus will keep a one-third interest in the airport, while a listed fund it manages owns another third.

Jandakot Airport comprises 49 properties, about 80ha of developable land and an airport ­operating business. Of the $1.3bn price paid for the airport, about 85 per cent represents an industrial portfolio of 49 properties and the development land.

Cbus Super also has interests in Melbourne, Brisbane and Manchester airports.

Dexus said Cbus Super was a new joint venture investor on its funds management platform. The industry super fund has more than 778,000 members.

When Dexus originally announced the acquisition of Jandakot last September it noted its intention to bring additional third party capital into the Jandakot structure prior to final completion.

Cbus Super chief investment officer Kristian Fok said the fund looked forward to harnessing Dexus’s capabilities to unlock strong performance across the Jandakot industrial precinct.

Dexus chief executive Darren Steinberg said the large-scale Jandakot portfolio had been secured off-market from Ascot Capital in a highly competitive environment for industrial assets.

“We are pleased to be able to secure additional third party capital for this opportunity, aligning with our focus to grow our funds management business,” he said.

Dexus executive general manager, funds management, Deborah Coakley said it was a “unique opportunity” for investors.

Cbus is merging with the $6.4bn troubled NSW energy industry super fund EISS Super.

The two funds announced they had signed a memorandum of understanding about a merger in December.