Propertylink launches $400m Australian Industrial Partnership with backing from Grosvenor Group

Propertylink Managing Director, Stephen Day announced today the establishment of a new industrial property vehicle focused on Australian industrial property – The Propertylink Australian Industrial Partnership (PAIP). The vehicle currently holds 7 industrial assets across several states valued at $100million with funding and scope to expand to $400million.

12th March 2014

Propertylink Managing Director, Stephen Day announced today the establishment of a new industrial property vehicle focused on Australian industrial property – The Propertylink Australian Industrial Partnership (PAIP). The vehicle currently holds 7 industrial assets across several states valued at $100million with funding and scope to expand to $400million.

“Recent acquisitions have demonstrated our strategic intention to grow our industrial property portfolio nationally” said Stephen Day. The partnership has been launched with a national industrial property footprint of assets including the properties in Wacol and Archerfield in Brisbane which Propertylink recently acquired from Dexus. The other assets are in Sydney, Perth and Melbourne. The partnership will continue to expand its portfolio overtime.

“The assets of most interest to us, are those which present the opportunity for Propertylink, with our broad in-house skill base, to add value or to achieve higher yields and total return by taking some calculated lease risk and “sweating the asset” with intensive asset management. Usually this is where there is a fundamentally sound asset in a good location, with current or pending vacancy such as traditional multi-let estates and single tenant distribution centres.

“The PAIP industrial strategy is offering great “risk adjusted” returns in the current climate due to the light capital expenditure requirements, relatively low incentives required to secure tenants and, most importantly, strong capacity to achieve a high proportion of targeted total returns to investors coming from cash distributions from rental income.” according to Mr Day.

The PAIP core investors are Goldman Sachs, Grosvenor Group (the privately-owned international property group) as well as Propertylink. Propertylink will manage the vehicle.

This vehicle is separate to the Propertylink fund that acquired 2 long lease industrial assets for $63million in October 2013. Propertylink will continue to seek long lease core opportunities for that fund in addition to assets for the Propertylink Australian Industrial Partnership.

“We are extremely pleased to have such experienced, well-established Institutions supporting the venture” said Stephen Day, Managing Director, Propertylink.

ENDS

For more information contact:
Naomi Curtis/Sorrel Basher, Press Office
Grosvenor
020 7312 6479/6101
pressoffice@grosvenor.com

Notes to Editors

Grosvenor Britain & Ireland aims to create value through our skills in placemaking anddesign, repositioning locations in ways that change customer perceptions and deliver results for our stakeholders. The core portfolio comprises 300 acres of Mayfair and Belgravia in London, which first came into the Grosvenor family in 1677. Ownership and active management of its London estate remains at the heart of Grosvenor Britain & Ireland’s strategy. Investment assets comprise the largest part of its portfolio. Grosvenor Britain & Ireland also undertakes development across London, and in selected city centres around the UK. As at 31 December 2012, Grosvenor Britain & Ireland had assets under management of £4.8bn.

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