Elanor Investors Group (Elanor) has partnered with PGIM Real Estate in a joint venture to acquire a 19-hectare last mile logistics development site in Melbourne, marking one of the  largest industrial property transactions in Australia this year. 

The sought-after site at 522-550 Wellington Road, Mulgrave, has the potential to be  redeveloped into a major last mile logistics estate with 113,000sqm of gross lettable area in a supply constrained industrial precinct. 

Co-Head of Industrial & Logistics at Elanor, Myron Poobalasingam, said the property presented an unprecedented opportunity to acquire an industrial and logistics brownfield site within one of Melbourne’s most tightly held and densely populated areas. 

“The site’s unrivalled access to major arterial roads makes it well positioned to capitalise on  the much talked about last mile logistics thematic with the site having access to approximately  35 per cent of Melbourne’s population within a 30-min drive time catchment,” Mr  Poobalasingam said. 

The site currently comprises a large 68,000sqm storage facility leased to Woolworths until  2026, with Woolworths having announced plans to close this distribution site upon expiry of  their lease.  

PGIM joins a growing list of institutional partners 

The investment from PGIM Real Estate is made on behalf of its Asia Pacific real estate strategy, as it continues to tap strategic growth opportunities across the region.  

PGIM Real Estate is the US$206 billion real estate investment and financing business of  PGIM, the US$1.34 trillion global investment management businesses of Prudential Financial,  Inc. (NYSE: PRU). It has a track record of investing in Asia Pacific real estate for nearly three  decades, with a strong team on the ground in Australia since 2011, having made over 50  investments for various equity and debt mandates.  

PGIM Real Estate Head of Transactions in Australia, Greg Linklater, said: “The structural  trends of e-commerce penetration and favourable long-term population growth outlook in  Australia are making a strong investment case for the logistics sector. We think this investment presents a compelling opportunity with strong rental growth prospects.”  

Managing Director and Head of Australia for PGIM Real Estate, Steve Bulloch, added: “We  feel that 2024 could prove to be a good opportunity to access some very good real estate. We  have made six strategic investments so far this year in Australia with a strong emphasis on  the logistics and living sectors.  

The investment marks a significant milestone for Elanor’s industrial and logistics platform, which is experiencing significant demand from wholesale and institutional investors.

Elanor Chief Executive Officer, Glenn Willis, said: “we are pleased to be partnering with PGIM  Real Estate in the acquisition of this strategic last mile logistics investment – an investment  we believe will deliver strong investment returns for both PGIM Real Estate and Elanor.” 

Co-Head of Industrial & Logistics at Elanor, Amneet Dari added: “The backing of a global  investment leader like PGIM Real Estate recognises Elanor’s approach to identifying and  unlocking value in real estate assets that deliver strong investment returns and highlights the  continued demand for quality industrial and logistics property investments in Australia.”  

The acquisition represents the third successful capital raise completed this year in partnership  with Elanor’s institutional distribution partner Fidante.