Gateway Capital Unveils $72m Plans for Mt Waverley

Industrial and logistics investment manager Gateway Capital has revealed a $72-million masterplan for its rebranded office and warehouse estate Urban Acres at Mt Waverley. 

The investment management business acquired the 24-building 20ha business park from Dexus in June as the seed asset for its Urban Logistics Partnership investment vehicle (GULP). 

The business park has a lettable area of 84,926sq m but Gateway Capital has a five-year vision to develop its under-utilised land further.  

The masterplan includes three additional food offerings, a wellness space and a brewery, as well as adding two warehouses and localised warehouse expansions across the park, with plans for a hotel. 

Gateway Capital chief executive Stuart Dawes said it was about “bringing the life back into the asset”.

Chief investment officer Peter McDonald said, “We want to create something that’s 24/7, a really vibrant community, even on the weekends. 

“That’s the vision.”

The  masterplan retains the existing 24 buildings on the site, while unlocking underutilised land and attracting people to the precinct. 

The investment vehicle was created with a focus on urban core plus, value add and development assets. Dawes said the diversified strategy enabled the vehicle to perform in every economic cycle. 

“Seeking opportunities in urban locations surrounded by large residential populations who need space to work and socialise, the acquisition of Axxess Corporate Park is a perfect illustration of the GULP strategy,” he said. 

“We’ve got patient capital behind us and we’ve got sensible return targets over sensible timeframes.

“We have capital that can focus on choosing the right assets rather than having to turn up all the dials to make the deal stack. It’s taking a long term view in supporting a very focused strategy.”

The rise of e-commerce and projected population growth are creating tailwinds for logistics demand according to Dawes. 

McDonald said he believed rent growth would continue into 2024 but it would return to a more normalised trend. 

“In our view you’re going to have to work your tenants hard and get your hands dirty. You have to sweat the asset to make things work,” he said. 

McDonald said they expected to see more deals in the market in 2024 as listed REITs and wholesale funds look to build liquidity and pay out redemptions. Gateway Capital has more than $830 million in assets under management and will look to pad out its GULP vehicle with long hold investments.