Australian pension fund acquires Melbourne site for $647 mln logistics hub

GPT

14/02/2024 13:01

By Lewis Jackson
       SYDNEY, Feb 15 (Reuters) - Australian pension fund
UniSuper on Thursday bought an undeveloped site in Melbourne to
develop a logistics hub worth more than A$1 billion ($647
million), signalling resilience in this segment amid challenges
faced by the commercial property sector.
    The fund paid A$260 million for the 66-hectare warehouse,
logistics and manufacturing greenfield site 15 kilometres (9
miles) west of downtown Melbourne, according to a statement. 
    The A$124 billion fund will work with developers and
property company GPT  GPT.AX  to develop the site into a
logistics and warehouse hub, the statement said.
    While office tower owners have seen property values plummet
by double digits due to remote working and higher vacancies,
industrial real estate has avoided this downturn on the back of
strong demand for assets like data centres and e-commerce
logistics hubs.
    "This super prime parcel of industrial land further improves
the quality of our diversified unlisted property portfolio and
adds to our exposure to the logistics and warehousing sector,"
Nick Stephens, UniSuper's senior manager for property said.
    The purchase marks the latest acquisition for the fund,
which has roughly A$8 billion invested in unlisted real estate.
In July, UniSuper acquired a 50% stake in a portfolio of 20
industrial properties for over A$500 million. 
    
   ($1 = 1.5454 Australian dollars)

 (Reporting by Lewis Jackson; Editing by Dhanya Ann Thoppil)
 ((lewis.jackson@thomsonreuters.com; +61477406822; Reuters
Messaging: @lewjackk))