Australian industry property-focused investment manager Propertylink and London-based firm Grosvenor have partnered together to launch an office-focused investment fund in Australia.
Grosvenor is the anchor investor in the Propertylink Office Partnership 3 (POP 3) fund with an equity commitment of A$40 million (€26 million; $26 million).
Over time, Propertylink also intends to introduce other investors to the vehicle, the firm said in a statement.
The capital raised via the fund has been invested in the acquisition of four properties in Sydney for a total of A$94 million from the New York-based private equity firm The Blackstone Group. The four buildings are: 1 Lucknow Road, 12 Julius Avenue, 10 Julius Avenue, and 10A Lucknow Road.
The commitment by Grosvenor marks its third partnership with Propertylink in Australia, and has been made by the group’s indirect investments team.
“Propertylink has proven its ability to buy well and deliver on its active asset management strategies. This vehicle is another opportunity for Grosvenor to secure access to good assets in Australia, with strong income and upside potential,” said Chris Taite, group investment director, Grosvenor Group.
The total portfolio is spread over an area of 263,500 square feet and has a 5.02 year weighted lease expiry. Revlon and Bank of China are among the tenants in the office properties.
“We are very pleased to be partnering again with Grosvenor,” said Stephen Day, managing director for Propertylink. “We are positive about the future for office investments in the Sydney CBD and major non-CBD markets such as North Ryde, North Sydney, Parramatta, Chatswood and Macquarie Park, and with the tremendous development of Sydney’s rail and road infrastructure and tenant demand we will target further investments in these key markets.”
A historically industrial-focused firm, Propertylink has been branching out into office and business parks acquisitions in the last few years in Australia.
Its total acquisitions in the commercial office sector now totals $500 million in value, which includes properties such as the Pitt Street and Miller Street in Sydney.
The firm’s total assets under management across sectors total more than $1.6 billion.