Growthpoint Inks $181m Industrial Portfolio Deal

A US investment giant has acquired a majority stake in a portfolio of six Australian industrial assets as the high level of interest in the sector continues.

Growthpoint Properties Australia REIT has inked a deal with New York-headquartered global alternative investment manager TPG Angelo Gordon, Growthpoint told the ASX this week.

It has formed an industrial fund partnership under which TPG, “ an aligned global institutional partner with extensive investment experience”, has acquired an 80 per cent stake in the industrial assets at book value for net sale proceeds of $181 million. 

Growthpoint will remain as investment and property manager, as well as holding the remaining 20 per cent.

The industrial sites include 6-7 John Morphett Place, Erskine Park, [pictured below] and 81 Derby Street, Silverwater [pictured at top] in NSW. 

In Victoria, sites at 6 Kingston Park Court, Knoxfield, 19 and 20 Southern Court, Keysborough, and 13 Business Street at Yatala, Queensland, are also included in the deal.

“This partnership supports Growthpoint’s strategy to grow its funds management business and capital partnerships,” Growthpoint chief executive Ross Lees said in a statement to the ASX.

Proceeds from the sale of the seed portfolio will initially be used to repay debt, reducing gearing by circa 2 per cent.

▲ Growthpoint’s Ross Lees called the partnership “a testament to the strength of our industrial portfolio”.

Settlement is expected to complete by December, subject to Foreign Investment Review Board approval. 

It marks a continuation of international interest in Australian industrial assets.

Offshore investment from the US into Australia increased by 58 per cent to $2.55 billion in the year to June, according to Colliers. 

The majority—38 per cent— went into the industrial sector with 20 per cent going to land lease communities and 19 per cent into residential. 

US investment giant Barings this year acquired a $780-million industrial portfolio with assets in Sydney and Melbourne from the Goodman Group while investor and developer Cabot Properties acquired a newly built 19,819sq m logistics asset, its first foray into Sydney.