Frasers Property, via its subsidiary Frasers Property Industrial has set up its first capital partnership in Australia with an investment vehicle sponsored by Morgan Stanley Real Estate Investing (MSREI).
The Frasers Prime Logistics Venture will aim to capitalise on the continued strong demand for premium industrial estates in key logistics hubs.
The 50-50 joint venture covers a portfolio of eight major industrial assets located across Australia covering a total gross floor area of 188,000 sqm
The portfolio, valued at around A$600 million, is fully leased, with 11 tenants including Primary Connect, National Tiles, and Williams Sonoma.
The portfolio boasts a strong WALE of 7.7 years, and the assets have an average age of just five years.
According to Frasers Property, this joint venture is part of its strategy to form long-term, strategic capital partnerships to improve returns while maintaining capital efficiency.
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"Aligning with like-minded capital partners is crucial to our strategic goals at Frasers Property," says Reini Otter, CEO of Frasers Property Industrial.
"This collaboration with MSREI allows us to leverage synergies effectively across our extensive industrial portfolio.
"Our dedication to delivering sustainable and top-tier industrial and logistics assets aligns with MSREI's objectives, and we look forward to forging a robust, enduring partnership based on our strong pipeline and shared vision," he adds.
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Frasers Property closed at 77 cents on April 16.
