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Super fund takes stake in $1.1bn industrial property portfolio

3 minute read

One of Australia’s largest super funds has expanded its property portfolio.

UniSuper has announced it has acquired a 50 per cent stake in an industrial property portfolio made up of prime assets in Sydney and Melbourne in a $560 million deal.

The $120 billion super fund acquired the stake from the National Pension Service of Korea, joining the $1.1 billion industrial portfolio’s existing investors Dexus and Blackstone.

Twelve of the portfolio’s assets are located in the Quarry Industrial Estate in Greater Western Sydney, while eight are located in the core industrial market of Truganina in Melbourne.

UniSuper noted that the portfolio is underpinned by an “excellent tenant profile” including companies like Coles, Toll, Northline, Roche, Blackwoods, Symbion, and UPS.

“We are delighted to acquire this high-quality portfolio of stabilised income-producing assets to complement our existing industrial development pipeline in the strongly performing logistics sector. The investment adds to our $7.3 billion unlisted property portfolio,” said UniSuper senior manager property Nick Stephens.

“The transaction highlights UniSuper’s ability to transact swiftly without the need for debt funding or regulatory approvals. As genuine long-term investors, we continue to look for unique opportunities that help our members grow their retirement savings.”

The acquisition was negotiated on behalf of UniSuper by real estate investment management firm Richmond Bridge under an industrial property investment mandate. Cushman & Wakefield’s Tony Iliuano and Adrian Rowse represented the vendor.

“We are pleased to have successfully concluded this transaction, capitalising on a market with fewer buyers, which allowed us to secure these high-quality assets at an attractive entry price,” commented Richmond Bridge chief investment officer Peter Wylie.

“When presented with the opportunity to assess this portfolio for UniSuper, we did not hesitate, recognising the rarity of such offerings in the market. We are immensely grateful to the UniSuper team for their collaboration, enabling us to accomplish an extensive amount of work within a short timeframe.”

Earlier this year, Richmond Bridge facilitated UniSuper’s acquisition of a 13-hectare industrial property at 1-7 Cawley Road Yarraville in Victoria for $105 million, as part of a new advisory mandate to build an industrial property portfolio across major Australian capital cities.

On Wednesday, UniSuper announced it had invested in NorthStar Impact, a Sydney-based specialist boutique funds manager that is focused exclusively on impact investing.

Jon Bragg

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.