Logos Group has partnered with Kohlberg Kravis Roberts and Abu Dhabi’s Mubadala Investment Company to launch a $1-billion fund to target Australian industrial assets.
The Logos-KKR-Mubadala joint venture aims to acquire and develop logistics facilities predominately across the key eastern seaboard markets, chiefly in Sydney, Melbourne and Brisbane.
This marks Middle Eastern pension fund Mubadala's entry into the Australian industrial market.
The Abu Dhabi sovereign wealth fund currently controls a $232-billion portfolio across six continents.
KKR and Mubadala will be the major investors in the fund with Logos to take a smaller interest.
CBRE Capital Advisors acted as financial advisor to Logos for the venture’s capital raising.
The capital raise was led by the head of capital markets for Asia Pacific, Greg Hyland, and the head of international capital—Pacific and South East Asia, Stuart McCann.
The venture’s seed property will be a 18.2ha development site at 3746 Ipswich Road, Wacol in south-western Brisbane, which was bought from New Zealand-based Fletcher Building.
Logos has begun plans to re-develop the site as a master-planned $200-million logistics estate on both a pre-lease and speculative basis with up to 95,000sq m of industrial space.
The property, which has access to Brisbane’s key arterial road network near the interchange of the Ipswich and Logan motorways, was occupied by Rocla Concrete Pipes, a subsidiary of Fletcher Building.
“We are pleased to have established a new venture with experienced global investors, KKR and Mubadala,” Logos Australia managing director Darren Searle said.
“[It will enable Logos] to continue to meet the ever-growing demand from global, multi-national and domestic customers for high-quality logistics facilities within Australia.
“We see the Wacol property as a strategic seed asset for this venture and are pleased to have facilitated this transaction from Fletcher Building, with whom we have a long-standing relationship.”
Logos is now backed by ARA Asset Management after the Singaporean investment house took a majority stake a year ago, buying out Macquarie’s position.
Logos is also backed by Ivanhoe Cambridge, a Canadian real estate industry player.
Logos founders John Marsh and Trent Iliffe also have a stake in the growing platform.