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GPT Group and QuadReal Property Group have announced a new Australian logistics joint venture, the GPT QuadReal Logistics Trust 2 (GQLT2). This partnership will begin with approximately $460 million in high-quality, stabilized logistics assets located in east coast urban infill and middle ring areas. Following its establishment, GQLT2 aims to grow with an additional $500 million investment, focusing on acquiring stabilized, core plus opportunities in major east coast markets. GQLT2 will be the primary vehicle for QuadReal to increase its Australian logistics investments and will be operated and managed by GPT.
GPT will contribute several balance sheet assets to initiate the Partnership at book value, based on independent valuations as of December 31, 2024, and will maintain a 20 percent co-investment interest. The net proceeds from this transaction, approximately $410 million, will be used by GPT to reduce gearing until they are reinvested.
QuadReal’s total commitment for an 80% stake in the partnership is approximately $400 million.
According to QuadReal’s Managing Director, Asia, Nat Miller, “QuadReal is excited to expand its strategic investments in Australia with a trusted partner like GPT. The transaction has strong market fundamentals and reflects our high conviction investment strategy which seeks to build portfolios that are resilient across economic cycles.”
GPT’s Chief Executive Officer and Managing Director, Russell Proutt, stated, “The formation of GQLT2 aligns with our strategy to meaningfully invest and grow with our partners by designing and pursuing compelling investment programs. We are pleased to have been able to activate the Partnership’s formation by providing a foundational portfolio of assets from our direct property holdings. GQLT2 builds upon the established relationship between our organisations that spans the logistics and living sectors, and we look forward to delivering on its strategy.”
The transaction is not expected to significantly impact GPT’s 2025 earnings. The completion of the transaction is targeted for July 2025 and is subject to FIRB approvals.
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