Stuart Dawes and Peter McDonald launch Grosvenor-backed Gateway Capital

Ex-Propertylink directors Stuart Dawes and Peter McDonald are back in the sector with the launch of a new real estate investment manager, Gateway Capital.

Peter McDonald, Gateway Capital managing director – property, left, and Stuart Dawes, Gateway Capital CEO.

Former Propertylink directors Stuart Dawes and Peter McDonald have forged back into the sector with the launch of a new real estate investment manager, Gateway Capital, that is backed by British heavyweight Grosvenor Group.

The pair, fresh from a stint at Asian logistics giant ESR, which took over Propertylink, have won Grosvenor as a minority equity investor via its indirect investment business, that had backed them in at previous firms.

Gateway Capital will take an initial focus on the hot industrial and logistics sectors where it will seek to add value to properties via both active asset management and asset development.

The pair say these strategies will be executed in areas that are forecast to benefit from strong tenant demand linked with the growth of e-commerce, together with other structural tailwinds supporting the area.

While Gateway Capital’s strategy will kick off with an industrial and logistics focus, the company will explore other asset classes over the medium term.

Gateway Capital has just launched its first investment vehicle, Gateway Capital Industrial Partnership, which will focus on adding value to industrial and logistics assets along the eastern seaboard.

The vehicle launches with a seed asset, 655-685 Somerville Road in Melbourne’s Sunshine West, which was picked up from a private investor for $23m.

The asset is in an infill, land-constrained location, providing an opportunity to add value through active tenant management and expansion moves. Gateway Capital has further assets in the pipeline which will see the GIP portfolio expand quickly in coming months.

In addition to equity investment in Gateway Capital, Grosvenor has committed initial funds to help establish the GIP portfolio, which is expected to acquire more than $200m of assets. The firm intends to win other investors to GIP over time to support the purchase of more assets that fit the bill as value-add opportunities.

Gateway Capital chief executive Stuart Dawes said noted Grosvenor’s “strategic support” for the company.

“We believe strongly in the inner urban industrial and logistics markets and are confident that our deep experience will identify assets where we can add value to create attractive core assets and ultimately deliver strong investor equity returns,” he said.

Grosvenor investment director, indirect investments, Andy Yates, said: “This latest partnership reflects Grosvenor’s continued commitment to Australia and specifically to its industrial and logistics sector. The Australian economy has been resilient through the Covid-19 pandemic, providing opportunities that Gateway Capital is very well placed to take advantage of.”

The Sunshine West asset features a 14,000sq m building leased to Dorel Industries. The asset was introduced to Gateway Capital by Chris Jones, of Dawkins Occhiuto.