Stockland today announced it has entered into a capital partnership with a special purpose vehicle advised by J.P. Morgan Asset Management, in line with its strategy to broaden capital partnering initiatives across the business to enhance risk-adjusted returns.
The capital partnership will focus on industrial and logistics assets, with the objective to establish and actively manage a portfolio of properties with a target value of $1 billion.
Stockland Managing Director and CEO, Mark Steinert said: “We have a clear goal to introduce third party capital with trusted, quality partners to help fast track the delivery of our development pipeline and expand our acquisition capability, and we’re delighted to have partnered with such a highly regarded, international group.
“Forming relationships with capital partners like this enables us to scale our management and development capabilities, grow assets under management more quickly, and enhance growth to achieve returns in line with or above our investment hurdles,” added Mr. Steinert.
Stockland Chief Investment Officer, Darren Rehn said: “J.P. Morgan Asset Management has a deep understanding of investment markets and the Australian logistics sector. As one of Australia’s largest logistics owner-operators, we can leverage our industry expertise and relationships to find commercially attractive investment prospects for this partnership. We look forward to working closely with J.P. Morgan Asset Management to maximise rental income and enhance total returns through strategic asset management of the new portfolio.”
The portfolio will be seeded with two properties on which Stockland has recently exchanged contracts to acquire – 151 Leakes Road, Truganina, and 140S Paramount Boulevard, Cranbourne West in Melbourne – for a combined total of approximately $110 million. After additional assets have been purchased from third parties to bring this total, in aggregate, to $200 million worth of property, the capital partnership will acquire a further $200 million of identified existing assets from Stockland’s logistics portfolio. Each of these transactions will be subject to approval from the Foreign Investment Review Board (FIRB) and are expected to be completed by mid to late 2021 (Initial Portfolio).
Mr Rehn continued: “Together, the Initial Portfolio will comprise assets valued at $400 million, and we will work with J.P. Morgan Asset Management to grow this partnership to more than $1 billion over the next three years.”
David Chen, J.P. Morgan – Global Alternatives’ Chief Investment Officer for Real Estate Asia Pacific, said: “We’re excited to form this long-term logistics partnership with Stockland, one of Australia’s largest diversified property groups and a recognised leader in sustainability and diversity. Stockland is uniquely well-positioned to capitalise on the growing demand for logistics across many supply-constrained markets and brings strong relationships with occupiers and end-users.”
The joint venture will primarily target the acquisition of established assets with solid, reliable income streams, purchased on market and primarily located along the high-performing eastern seaboard.
Stockland will operate and manage the assets and will receive a fee for these services.