Gaw launches Australian industrial vehicle

The Hong Kong-based private equity real estate firm is looking to make opportunistic investments in industrial assets in Australia’s East coast cities.

Gaw Capital Partners, the Hong Kong-based private equity real estate firm, is partnering with a Sydney-based property company Abacus Property Group to invest in Australian industrial property markets, its first foray in to nation’s industrial market.

The pair have established the Abacus GAW Investment Trust, an opportunistic investment vehicle, which will target gross assets of around A$200 million ($153 million; €139 million) in major Australian cities throughout Australia’s East coast.

Gaw will provide 90 percent of the equity and Abacus will provide 10 percent. Abacus will also contribute local property and asset management. It is envisaged that the vehicle, once stabilized, will seed a core investment vehicle.

The pair have already made their first investment using capital from the vehicle, acquiring 182 – 198 Maidstone Street, Altona VIC for a gross purchase price of A$30 million. The property is an office/warehouse facility with an associated cold store. The gross lettable area totals 478,000 square feet on a substantial land holding of 8.3 hectares. The property is situated in the industrial precinct of Altona, a few miles west of Melbourne.

Gaw and Abacus also recently exchanged contracts to acquire 2-34 Davidson Street, Chullora for A$35 million. The Chullora property is an office/warehouse facility totalling 195,000 square feet on a substantial land holding of 509,000 square feet. The property is located in Chullora, west of Sydney and in close proximity to both M4 and M5 motorways.

“We are excited about the first two assets we are acquiring in Melbourne and Sydney and look forward to more acquisition opportunities in the near future. We are confident that this is the beginning of a fruitful relationship and a long term investment program for us in this market,” commented Kenny Gaw, Gaw Capital president and managing principal.