UniSuper Takes Half-Share in Monster Logistics Portfolio

Superannuation fund giant UniSuper has taken a 50-per-cent stake in a portfolio of industrial and logistics assets across Sydney and Melbourne in a deal worth more than $500 million.

UniSuper acquired the 20 assets from the National Pension Service of Korea, in a deal brokered by real estate investment management firm Richmond Bridge.

The deal gives the $120-billion superannuation fund a half-share in 340,000sq m of industrial and logistics space, at a time when the Australian market is the tightest in the world.

UniSuper joins existing co-owners Dexus and Blackstone in the venture.

Of the 20 assets, 12 are in the Quarry Industrial Estate in Greater Western Sydney. The remainder are in Truganina, about 20km west of Melbourne—another core industrial market.

The portfolio is underpinned by tenants that include Coles, Toll, Northline, Roche, Blackwoods, Symbion, and UPS. 

UniSuper’s senior manager for property, Nick Stephens, said the high-quality portfolio of stabilised income-producing assets would complement its existing industrial development pipeline in the strongly performing logistics sector.

“The investment adds to our $7.3-billion unlisted property portfolio,” Stephens said.

“The transaction highlights UniSuper’s ability to transact swiftly without the need for debt funding or regulatory approvals. As genuine long-term investors, we continue to look for unique opportunities that help our members grow their retirement savings.”

▲ The Quarry Industrial Estate in Greater Western Sydney: Of the 20 assets, 12 are in the much-sought-after industrial estate.

Richmond Bridge chief investment officer Peter Wylie said the transaction had capitalised on a market with fewer buyers, which allowed them to secure high-quality assets at an attractive entry price.

“When presented with the opportunity to assess this portfolio for UniSuper, we did not hesitate, recognising the rarity of such offerings in the market.”

Cushman and Wakefield’s Tony Iuliano and Adrian Rowse managed the sale for the vendor.

Australia’s industrial and logistics property market has reached a record low of 0.6 per cent and is now the tightest on the planet, according to CBRE Research.

Australia is facing a squeeze worse than the United Kingdom on 1.6 per cent and Hong Kong on 2.3 per cent, research across the five major markets of Sydney, Melbourne, Brisbane, Perth and Adelaide found.

At just 0.2 per cent, Sydney had the lowest vacancy rate of any major city in the world, followed closely by Perth on 0.4 per cent.