Real estate fund manager Irongate Group (“Irongate”) has confirmed the growth of its industrial platform in Australia with four further acquisitions taking place in the final quarter of 2024.

Backed by offshore global investors, the industrial platform now comprises $350 million of industrial and logistics assets across both New South Wales and Queensland.

It’s back-to-the-future for Irongate. In 2022, Irongate’s management team delivered on the sale of the Irongate listed-REIT to Charter Hall. The REIT included 37 office and industrial assets with a value of $1.7 billion and, when sold, achieved market leading returns to investors of close to 300% over the 9 year life of the REIT. 

Irongate has grown AUM 20% year-on-year since the management team, in partnership with South Africa’s JSE-listed Burstone Group, completed the MBO of the funds management business. AUM is now close to $750 million. This equity is committed to projects with a forecast end value in excess of $3.5 billion. Existing institutional investors, along with Burstone Group, have provided ongoing commitments to further grow the portfolio.

The most recent additions to the industrial platform include:

• South Pine Road, Brendale QLD. A 9.7-hectare site with a GLA of 31,738sqm with a 3.7 year WALE.
• Interchange Industrial Estate, Narangba, QLD. A 10-hectare site with a GLA of 34,382sqm leased to Bunnings, Apex Building Products, Cleanaway, Liquid Specialty Beverages and Avante with a 4.9 year WALE.
• Williamson Road, Ingleburn, NSW. A 4-hectare site with GLA of 18,564sqm with a 2.9 year WALE.
• Zeleny Road, Minchinbury. A 10,190sqm state-of-the-art cold storage facility which has commenced development and is subject to a triple-net lease. This facility was acquired on a fund-through basis.

Along with the past acquisition in Smithfield all these properties share a similar thesis to that developed through the last 15+ years of Irongate’s active asset management – buying infill industrial real estate in Australia’s tightest markets with strong underlying property fundamentals that can benefit from a hands-on approach to property management.

Irongate CEO, Graeme Katz, says his team will continue to emulate its previous successes including the further growth of its industrial platform as well as investment in the rebounding office market. 

“This acquisition reflects our confidence in the long-term prospects of the industrial market in Australia. The sector has consistently shown its strength, and we see further potential for growth, particularly for investors who are able to identify undervalued assets in strategic locations,” said Katz.

“Likewise, we are seeing the rebound in the office market, particularly the core Sydney CBD. We have previously timed our entrance and exit into this market well and see the signs pointing to a new growth phase. We have already commenced our activity in the office market alongside both existing and new institutional investors.”