Singapore-based GIC, a sovereign wealth fund, and Dexus, an Australian real estate trust, have entrenched an A$2 billion ($1.4 billion) unlisted venture to commit in logistics properties Down Under.
The joint venture, called Dexus Australian Logistics Trust, will be seeded with a logistics portfolio consisting mostly core facilities in strong performing precincts with good access to major arterial roads, rails and ports, mostly in Sydney and Melbourne.
GIC will be the entity's foundation investor, taking 25 percent of the core portfolio, with rights to buy more 24 percent by June 2020. Partner firm Reit Dexus will initially hold the other 75 percent and GIC will also take an initial 49 percent interest in the venture's $1 billion seed development portfolio.
Furthermore, the joint venture will buy three development opportunities with a total future completion value of $361.6 million. It will maintain the focus on core logistics properties in Australia.