The Abu Dhabi Investment Authority will lift its exposure to Australia’s booming industrial real estate sector by more than $1 billion through its tie-up with local investment platform Logos, which includes a large stake in the Qantas Sydney Airport precinct.
Although the deep-pocketed Middle Eastern sovereign wealth fund has not disclosed the exact amount of additional equity it is bringing, its increased commitment will provide sufficient capital to expand the gross asset value of its mandate with Logos to more than $5 billion.So far, the Logos Australian Logistics Venture’s portfolio comprises nine, large multi-tenanted logistics estates with a total end value of $3.7 billion.
But there is plenty of scope to expand that portfolio, after Logos steered the ADIA mandate, in a consortium with AustralianSuper, into the high-profile acquisition last October of Along with existing tenancies, including with Qantas itself, the Mascot land has considerable redevelopment potential, in line with the ADIA mandate’s strategy of acquiring and developing logistics real estate.Sean Singh, who heads Logos’ funds management business in Australia and New Zealand, said the additional commitment from the Abu Dhabi sovereign investor followed the success of the mandate’s initial investments.
Over the past seven years, the portfolio has been built up to include logistics estates at Heathwood in Brisbane, the Prestons and Marsden Park estates in Sydney and at Truganina in Melbourne’s west.