Deutsche Asset Management (Deutsche AM) on Monday has acquired two logistics facilities from PropertyLink, a listed Australian real estate investment trust, in an off-market transaction on behalf of a German institutional client for US$56.07 million.
In Deutsche AM’s mission to increase its sector exposure to logistics in Asia Pacific, the acquisition follows the recent purchase of GLP Narita, a grade A modern logistics warehouse in Tokyo last December.
The two acquired facilities comprised of two single story warehouses including administration offices and parking, which are located at 45 Fulton Drive, Derrimut in Melbourn, and 50-80 Southlink Street, Parkinson in Brisbane respectively. Additionally, the Derrimut site occupies over 34,000 square meters, that is 4,000 square meters larger than the Parkinson site.
“We are pleased to add Rand Transport’s facilities to our portfolio,” said Victoria Sharpe, the Head of Real Estate, Asia Pacific for Deutsche Asset Management.
“With good quality, cold storage accommodation in prime Australian locations in small supply, over the long term we expect the assets to deliver stable cash flows with low volatility in line with the strategy for our investors,” she added.
Originally designed for an anchor tenant, Rand Transport which is a leading service provider of refrigerated interstate transport and warehouse in Australia, the cold logistics facilities designed in 2010, were purpose-built to connect to the local port, airport, and railway stations in both Melbourne and Brisbane via major expressways and road networks.
Having invested in real estate assets for more than 40 years, Deutsche AM is part of the Alternatives platform, which business has more than 410 employees around the world and US$54.4 billion in assets under management as of September 30, 2016.
By Vivian Foo, Unicorn Media
This news is published on Reuters.