Blackstone acquires GIC’s stake in Dexus Australia Logistics Trust for $1.5bn


US private equity firm Blackstone said that its Core+ Real Estate strategy in Asia will acquire Singaporean wealth fund GIC’s stake of 49% in the Dexus Australia Trust for AUD 2.1 billion ($1.5 billion).

The remaining 51% stake in Dexus Australia Trust will be held by Dexus, an Australian real estate investment trust (REIT).

Dexus Australia Trust owns a portfolio made up of 77 premium-grade logistics assets focused on Sydney and Melbourne.

According to Blackstone, the deal is the sixth investment in Asia in 2021 under Blackstone Real Estate’s Core+ strategy apart from being the largest investment in Asia under this strategy so far.

Blackstone acquires GIC’s stake in Dexus Australia Logistics Trust for $1.5bn

Blackstone acquires GIC’s stake in Dexus Australia Trust for $1.5bn. Photo courtesy of Americasroof at English Wikipedia.

Chris Tynan — Head of Blackstone Real Estate Australia said: “We continue to bring our global scale and expertise in investing in to the Australian market. Over the last five years, we’ve been active in the premium-grade logistics sector in Australia.

“While online sales continue to soar, Australia’s penetration rate continues to be low relative to that of other major hubs around the world. We believe there’s tremendous opportunity for growth, supported by Australia’s strong demand.”

Dexus Australia Trust was formed in late 2018 and was seeded with 55 assets from the Dexus’ industrial portfolio. Initially, GIC acquired a stake of 25%.

The trust’s portfolio is weighted to conventional facilities, which are leveraged to e-commerce growth.

Darren Steinberg — CEO of Dexus said: “We are pleased to have worked with GIC to grow this high-quality portfolio. This new relationship provides a stable long-term source of capital to invest alongside us.

“We welcome Blackstone onto our platform and look forward to continuing to drive the Partnership’s strong performance.”

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