Australian property trust GPT Group plans to create an A$1 billion (US$640 million) logistics partnership in Australia with Canada’s QuadReal Property Group.
GPT said the logistics joint venture to be known as GPT QuadReal Logistics Trust 2 (GQLT2) would be seeded with about $460 million of high quality, stabilised logistics assets in east coast urban infill and middle ring locations.
It said the partnership aimed to deploy another $500 million through the acquisition of “stabilised, core plus” opportunities in major east coast markets.
GQLT2 would serve as the primary vehicle for privately-owned QuadReal to scale its Australian logistics investments and would be operated and managed by GPT.
GPT said it would sell unspecified assets to seed the partnership at book value and retain a 20% interest, with the net proceeds of about $410 million from the asset sales to be used to reduce gearing until re-invested.
The transaction was not expected to have a material impact on GPT’s 2025 earnings and the transaction was expected to be completed by July 2025, subject to Foreign Investment Review Board approval.
GPT Chief Executive Officer and Managing Director Russell Proutt said the formation of GQLT2 aligned with GPT’s strategy to meaningfully invest and grow with partners by designing and pursuing compelling investment programs.
“We are pleased to have been able to activate the partnership’s formation by providing a foundational portfolio of assets from our direct property holdings,” Proutt said in an ASX announcement.
“GQLT2 builds upon the established relationship between our organisations that spans the logistics and living sectors, and we look forward to delivering on its strategy.”
QuadReal Managing Director, Asia, Nat Miller said: “The transaction has strong market fundamentals and reflects our high conviction investment strategy which seeks to build portfolios that are resilient across economic cycles.”
Established in 1971 and formerly known as General Property Trust, GPT owns shopping centres and malls, commercial office buildings in major cities and industrial properties like warehouses and distribution centres.
GPT (ASX: GPT) shares closed nine cents higher at $4.64 on Thursday, valuing the company at $8.94 billion.