Deutsche Asset Management has acquired a Melbourne logistics facility on behalf of an undisclosed German institutional investor.
The logistics warehouse is single let to Montague Cold Storage, one of Australia’s largest cold storage groups. The single-story warehouse, comprising 1.8 million square feet, has freezer rooms, facility rooms, and a cold room annex, in addition to a car park.
Deutsche AM has acquired it in an off-market transaction from CorVal, a Sydney-based property manager.
The firm declined to disclose the purchase price.
“The addition of Montague Cold Storage provides a good opportunity to further diversify the sector and geographic allocation of our fund,” said Victoria Sharpe, head of real estate for Asia Pacific at Deutsche AM.
This is Deutsche’s third logistics acquisition in Australia this year. According to Sharpe, continued growth in the food retail sector is expected to continue driving demand for cold storage facilities.
Earlier this month, Charter Hall also made a A$179.4 million investment in an Australian cold storage facilities’ portfolio, predominantly located in New South Wales and Victoria. The transaction reflected an average initial yield of 6.5 percent, and is part of Charter Hall’s continued focus on the industrial and logistics sector.