Industrial real estate financing firm LOGOS is establishing a new ‘core / core plus’ venture, LOGOS Australia Logistics Portfolio (LALP) with a leading Australian investor.
The strategy of LALP is focused on acquiring and owning high-quality core and core plus logistics facilities in prime industrial markets, predominantly along Australia’s eastern seaboard. It will initially have approximately A$500 million of investment capacity. LOGOS says it has identified a strong pipeline of acquisition opportunities and the significant commitment reflects LOGOS’ and its investment partner’s confidence in the opportunities available and performance of the logistics market in Australia.
Joint managing director of LOGOS Trent Iliffe said: “We are pleased to be partnering with a leading Australian investor on this new venture. We will be looking to acquire existing assets and aggregate a premium portfolio with long leases to high quality tenants, with value-adding upside.”
Joint managing director of LOGOS John Marsh said: “The Australian logistics market has continued to deliver solid returns over the past three, five and ten years and we expect this performance to continue, with the sector experiencing strong demand driven by trade flows and growth in online retailing.
“Given Australia’s growing exposure to online retailing, and our experience across a number of Asian markets that have experienced significant online retail growth, we’re excited to be able to bring our learnings from these markets and adapt them to Australia’s growth story,” he said.
LOGOS now has A$4 billion of equity commitments to 14 ventures across its five regions with target assets under management of over A$9 billion.