An asset in the newly acquired portfolio in Altona North, Victoria Source: Lendlease
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  • Lendlease and Morgan StanleyReal Estate Investing form a joint venture to acquire eight industrial assets on the eastern seaboard
  • The assets comprise five leased industrial facilities and three development sites
  • The sites come with a developed value of approximately $430 million
  • The intention is to grow the joint venture through the acquisition of develop to core industrial assets

Lendlease has bought a portfolio of eight industrial assets from a private logistics group in a 50/50 joint venture with an investment vehicle sponsored by Morgan Stanley.

The assets total about $430 million in developed value and include five leased industrial buildings and three development sites.

Lendlease stated that its goal was to expand the joint venture by acquiring develop-to-core industrial assets via pipeline prospects identified by itself and its development manager, EMKC.

Lendlease plans to sell a portion of its 50 per cent ownership to institutional capital partners over time while keeping a co-investment position.

The five operational assets have a combined gross lettable area of about 100,000 square metres and are leased on 15-year terms, spread across the eastern seaboard.

The three development sites are in Altona North, and Truganina in Victoria and Lytton in Queensland.

The transaction of the portfolio was handled by CBRE’s Chris O’Brien.

Lendlease has been keeping itself busy as it looks to take advantage of a strong industrial market, going through a blitz of purchases.

Acquisitions by its Australian Prime Property Fund Industrial has totalled about $720 million in industrial assets through its funds and mandates over the previous four months.

Lendlease Investment Management managing director Scott Mosely, said the industrial sector had been a strong performer for the company and the acquisitions provided further scale and diversity.

“We aim to grow this platform over time with a focus on development to core assets, including further potential opportunities with EMKC,” he said.

“The sector has experienced strong tailwinds over recent years that continue to accelerate. The growth in e-commerce, improvements in automation and the demand for last mile logistics and pick-up convenience for shoppers are key themes that will continue to drive growth.”

EMKC director and co-founder Edward McKenna said the company was delighted to be partnering with Lendlease and Morgan Stanley Real Estate Investing.

“With a strong focus on medium to large format industrial and logistics development across the East coast of Australia, EMKC is well placed to provide an ongoing pipeline of develop to core assets for the partnership over the coming years,” he said.

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