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 Logistics Trust for AUD 2.1 billion ($1.5 billion).

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

Dexus Australia Logistics 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.

Chris Tynan — Head of Blackstone Real Estate Australia said: “We continue to bring our global scale and expertise in investing in logistics 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 e-commerce penetration rate continues to be low relative to that of other major logistics hubs around the world. We believe there’s tremendous opportunity for growth, supported by Australia’s strong e-commerce demand.”

Dexus Australia Logistics 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 logistics 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.”