Blackstone Inc. is taking over a stake in Dexus Australian Logistics Trust from GIC Private Limited, a Singapore sovereign wealth fund, for AUD 2.1 billion (USD 1.5 billion), in a gamble on uplifting the e-commerce demand in the nation.
Blackstone buys stake from GIC Private Limited
The American acquiring company is including 77 premium-grade logistics properties situated in Melbourne and Sydney into its collection with the takeover of a 49% stake in Dexus Australian Logistics Trust, Blackstone’s head of Asia real estate takeovers, Alan Miyasaki, stated in an interview.
The agreement adds the private equity firm’s gamble on warehousing internationally after November, thus acquiring an array of properties in Europe and the United States from Cabot Properties Incorporation for USD 2.8 billion. Surging demand for such assets owing to the growth in e-commerce, united with lockdowns, and consequent demand for similar assets owing to the development in e-commerce, along with lockdowns and successive virus checks in several nations, has inhibited the capacity to facilitate a new supply swiftly, stated Miyasaki.
He stated that when one witnesses the supply and demand imbalance, that is usually an optimistic opportunity for future maturity in the portfolio.
Blackstone’s most recent purchase is its biggest investment in Asia within the almost USD 100 billion core plus stratagem, which concentrates on long-tenure investments in developed markets and is the largest facilitator of fee-related earnings at the company. The agreement adds to preliminary purchases in Asia inclusive of a Singapore office edifice and 38 residential assets in Japan’s Tokyo and Osaka.
Dexus Australian Logistics Trust is a collaborative venture established in 2018 betwixt Dexus, an Australian real investment firm and GIC.
Logistics and industrial proved to be the most buoyant asset class in APAC real estate in Q3, supported by strong demand for safety stock to safeguard against supply chain disturbances, as per the research from real estate consultancy CBRE issued in November 2021. Outdoing markets are inclusive of Singapore, Sydney, Melbourne, Hong Kong, and Shenzhen.
Blackstone zeroed in on the agreement owing to Australia’s capable e-commerce growth, Miyasaki stated. The country’s market for online procurements is estimated to mature by 13.4% to accomplish AUD 60.6 billion (USD 43.32 billion) in 2021, as per an October report by data analytics company GlobalData. As the pandemic enhances the shift to online sales, that figure is estimated to surge to AUD 91.5 billion in 2025.
Miyasaki stated that this is a humongous portfolio and a very huge capital investment. This was challenging to duplicate in several nations where there is a restricted scale to the prevalent stock.