Australand Property Group (ALZ) announced that it has established a logistics joint venture with the Government of Singapore Investment Corporation (GIC) with a target investment size of $450 million. The Australand Logistics Joint Venture will initially invest in a portfolio of eight prime quality industrial assets, with a total value on completion of $220 million, sourced from Australand’s investment portfolio and development pipeline. Australand will manage the Joint Venture and will hold a 19.9% interest with GIC holding the remaining 80.1%.
The initial portfolio comprises six completed assets and two properties currently under development. The completed assets have been sold into the Joint Venture at or slightly above Australand’s December 2010 book value and the two properties under development are to be acquired in early 2012. This Joint Venture is consistent with Australand’s strategy to establish new capital partnering relationships and will provide an additional source of funding for future logistics opportunities. The initial term of the Joint Venture is five years, with an investment period comprising the first two years. During the investment period, the Joint Venture will have a first right of refusal on all wholly owned logistics facilities Australand proposes to sell to a third party.
Australand’s Managing Director, Bob Johnston, said “We are very pleased to enter into a long term strategic relationship with GIC. The Joint Venture provides the Group with an aligned investment partner that has capacity to acquire completed assets from the Group’s industrial development pipeline. We look forward to growing the Joint Venture to its full potential.”
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