Blackstone sells Valad industrial assets in Australia

The New York private equity real estate giant has offloaded a portfolio of logistics assets inherited in its 2011 acquisition of Australian real estate investment management firm Valad in a deal valued at A$138m.

Blackstone, the New York-based private equity real estate giant, has exited from a portfolio of Australian logistics properties in a deal valued at A$138 million (€95.5 million; $121.26 million).

The assets were owned by Valad Property Group, the Sydney-based real estate investment management business bought by Blackstone in 2011 on behalf of its Blackstone Real Estate Partners (BREP) VI fund.

Blackstone currently is selling the European division of Valad Property Group, called Valad Europe, in a transaction expected to complete by the end of the year. However, the sale of this logistics portfolio is not thought to be strategically connected.

The buyer of the assets was M&G Real Estate, the London-based real estate investment management business of UK insurer Prudential, and Propertylink, the Australian logistics property investment management business.

The portfolio consists of six assets. Two of them are based in New South Wales and Victoria and are long-leased and have been acquired for M&G Real Estate. Propertylink has agreed an asset management contract with M&G for these.

The other four are higher-yielding and are based in Sydney and Brisbane and have been purchased for Propertylink’s Propertylink Australian Industrial Partnership (PAIP), a club investment vehicle that includes New York bank Goldman Sachs and London-based property company Grosvenor as investors.

Propertylink’s head of investment management, Stuart Dawes, said: “The acquisitions will improve PAIP’s weighting to the Sydney market and will increase the number of assets to 26, valuing the portfolio at around A$435 million.”

“We are delighted to have partnered with M&G Real Estate in securing quality assets in the Australian logistics sector. Propertylink will continue to seek further acquisitions for PAIP.”