Auatralian property company The GPT Group and QuadReal Property Group, a global real estate investment company headquartered in Vancouver, British Columbia, have expanded their 50:50 joint venture to A$2 billion.
The jont venture plans to acquire and develop a high-quality portfolio of Australian prime logistics assets.
The additional commitment follows the launch of the initial A$1 billion joint venture in February 2021.
In just under twelve months the joint venture has invested in seven developments, four of which are already 75% pre-leased. Upon completion these projects will comprise a total of 3.4 million square feet of logistics space (315,000 square metres).
Peter Kim, QuadReal’s Managing Director for Asia, commented: “The initial alignment we expected with the GPT team has exceeded our expectations. First, we share a commitment to how we will do business together as both organizations consider the best for today and tomorrow in design, execution, and environmental stewardship. Additionally, we share a passion for acquiring or developing high quality industrial assets to address the increasingly discerning needs of the customers we serve.”
GPT Head of Logistics, Chris Davis, said: “The success of the joint venture to date is a testament to GPT and QuadReal’s aligned strategy and values. We share a commitment in delivering and investing in quality assets for our customers with a focus on environmental, social and governance (ESG) initiatives. GPT look forward to further progressing the partnership as we upsize the capital commitment to $2 billion.”
QuadReal said the partnership provides an opportunity for both GPT and QuadReal to accelerate the growth of logistics assets under management.
”GPT has been appointed to provide investment management, capital transaction, property management and development services to the joint venture, leveraging the Group’s strong track record in logistics development and asset management. QuadReal brings its own extensive experience in the industrial sector, owning and managing more than 100 million square feet (9 million square metres) of single-and-multi-tenant industrial buildings across the globe. The organizations share an aligned commitment to ESG initiatives, which will be incorporated into the joint venture’s activities,” said QuadReal in a statement.