This joint venture will combine UBS Global Asset Management‘s global capital raising and real estate investment management capability with Grocon’s expertise in development and deal origination.
According to both companies, this will provide market-leading investment opportunities for investors.
UBS Grocon Real Estate will support demand from institutional investors for a broad range of fund types and real estate investment products covering core office, residential, and other opportunistic investments.
The platform will benefit from a first right of refusal over Grocon’s development pipeline as well as being able to acquire third party assets in the open market.
UBS Grocon Real Estate will be chaired by UBS Global Asset Management chief executive & chairman, John Fraser.
Grocon chief executive, Daniel Grollo will be a non-executive director.
Mr Fraser said the partnership forms part of UBS Global Management’s strategy to strengthen its real estate presence in the APAC region and specifically in the Australian market.
“Securing a partnership with one of Australia’s most prominent developers will allows us to bring the best development opportunities as well as top quality assets to both our domestic and international client bases,” he said.
Mr Grollo said the venture will support Grocon’s aim of producing the best investment grade real estate product in Australia.
Global Asset Management head of global real estate, Thomas Wels, said the platform is an important building block in Global Asset Management’s global growth strategy.
“More and more of our growth will stem from partnering with best in class real estate developers to bring the best investment opportunities to our global client base,” said Mr Wels.
UBS Grocon Real Estate expects to participate in a number of investments in the next few months from both Grocon’s existing $2 billion development pipeline and beyond.
This includes Grocon’s redevelopment of the Carlton Brewery and 85 Spring Street, both in Melbourne.
