Australian sovereign wealth fund Future Fund has tied up with Australian-listed office and industrial property company DEXUS Property Group for a 50:50 industrial property partnership, it has been announced.
The partnership will be seeded with Quarywest, a development site at Greystone on the western outskirts of Sydney, bought via the exercising of a call option from construction form Boral in a deal valued at A$50.5 million (€34.9 million; $47.6 million).
The deal, which is expected to complete next week, is expected to be the first of a number of transactions undertaken by the partners, although no specific targets were articulated in the announcement.
The site is 62-acres and is located near other industrial estate owned by DEXUS and other capital partners of the firm. Once developed, it is expected to offer approximately 1.2 million square feet of industrial space.
DEXUS’ head of capital, Penny Ransom, said the partnership reflected Future Fund’s desire to leverage the firm’s specialism in industrial real estate, in “accessing, developing and managing industrial property to deliver attractive risk-adjusted returns.”
Future Fund is the 12th largest sovereign wealth fund with approximately A$100 billion of assets under management. Its property team consists of four professionals, led by head Barry Brakey.
For more on Australia’s Future Fund see the May issue of PERE. Click here.