GPT and QuadReal announce $1b logistics partnership
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The news: GPT Group and QuadReal Property Group have announced a logistics joint venture to expand their logistics investments in Australia.
The numbers: GPT QuadReal Logistics Trust 2 (GQLT2) will be seeded with approximately $460m million in logistics assets, which will target additional growth of $500 million in acquisitions across major east coast markets.
GPT will sell down several balance sheet assets to seed the Partnership at book value (based on independent valuations as at 31 December 2024) and will retain a 20% co-investment interest. Following the transaction, net proceeds of approximately $410 million will be used by the Group to reduce gearing until re-invested. The Canadian investment giant QuadReal’s total commitment for an 80% stake in the partnership is approximately $400 million.
A joint statement from the companies says that the transaction is not expected to have a material impact on GPT’s 2025 earnings.
The context: The two companies have partnered before, having established an $800 million 50-50 joint venture for the GPT QuadReal Logistics Trust (GQLT) in 2021, which expanded to $2 billion the following year.
What they said: QuadReal’s managing director, Asia, Nat Miller said, “QuadReal is excited to expand its strategic investments in Australia with a trusted partner like GPT. The transaction has strong market fundamentals and reflects our high conviction investment strategy which seeks to build portfolios that are resilient across economic cycles.”
GPT’s CEO and Managing director, Russell Proutt said: “The formation of GQLT2 aligns with our strategy to meaningfully invest and grow with our partners by designing and pursuing compelling investment programs.”
