Propertylink Australia logistics club invests A$107m

The logistics investment club vehicle of Propertylink, Grosvenor and Goldman Sachs has more than doubled the number of assets on its books with a portfolio purchase from Abacus and one of its funds.

Propertylink Australian Industrial Partnership (PAIP), the logistics investment club vehicle of Australian property and infrastructure firm Propertylink, UK property company Grosvenor and US investment bank Goldman Sachs, has acquired A$106.75 million (€73.8 million; $100.1 million) of assets.

Propertylink announced today it had purchased 10 properties in Victoria and New South Wales from Australian-listed property company Abacus Property Group and Abacus Diversified Income Fund II, one of its funds, in its largest acquisition since it was established in March. The club has the scope to increase its assets under management to closer to $600 million in value and is expected to fill its quota over the coming 18 months.

Following the transaction, PAIP controls 17 assets across Australia, ranging from “some solid long lease assets with excellent tenant covenants blended with traditional multi-let estates and single tenant distribution centres”, Stephen Day, Propertylink’s managing director said in the announcement. “These acquisitions are evidence of our strategic intention to grow our industrial property holdings nationally,” he said.

The assets are 97 percent occupied and have average weighted lease expiries of four years, offering a 9.4 percent yield in the process. However, Peter McDonald, head of property at Propertylink added that the firm intended to undertake “strong asset management” on the assets. “We’ll create significant upside by knuckling down and really working the assets,” he said. Among the firm’s potential strategies is to sub-divide the land and to strata sell the assets. To aid its effort, Propertylink has hired former Jones Lang LaSalle director Casey Greenberg to join its asset management team.