Partners Group, one of the largest firms in the global private markets industry, acting on behalf of its clients, and Realterm, an independent global investment manager, announced today the third acquisition of their transportation logistics real estate joint venture in Australia. 

The asset, 59 Glendenning Road, Glendenning, was acquired for $33M(AUD) on a nine-month sale and lease back from S&L Steel.

The property features a 9,019-square meter freestanding industrial warehouse facility across a 20,234-square metersite. Its premier North-West location boasts a record low vacancy level of 0.5% and is supported by an expanding surrounding population, excellent transport links, and immediate proximity to the M7 Motorway.

“This well-located asset, in a key Sydney submarket, isparticularly appealing due to its low site coverage providing high quality outdoor storage for potential occupiers. This acquisition aligns with our strategy to builda portfolio of industrial outdoor storage facilities catering for transport-advantaged occupiers.” said Toni Ryan, Fund Manager Australia at Realterm. 

The asset brings the joint venture’s portfolio to over $125M(AUD), following its inaugural acquisition of 77 Governor Macquarie Drive, Chipping Norton, a 41,490-square meter IOS secure storage facility; and 28,760-square-meter IOStransport facility at 311 The Horsley Drive, Fairfield which was acquired for $28M (AUD) in the back half of the year.

“Realterm’s Australian strategy is to acquire assets suitable for industrial outdoor storage offering significant opportunities for potential occupiers, while avoiding overdevelopment with warehousing. We are excited to have rounded out the year with a site in each of our target submarkets, aligning with our strategic growth in Australia.” Charlotte Brabant, Head of Investments, Australia. 

“This addition to our portfolio reflects our focus on securing strategically located assets that offer significant potential for growth and optimization,” said John Dixon, Member of Management, Real Estate Asia at Partners Group.

Joe Chien, Managing Director, Real Estate Asia at Partners Group, added, “The industrial outdoor storage sector presents a compelling opportunity as it addresses critical needs in urban logistics. We remain committed to identifying and expanding our footprint in this growing market segment across Australia.”

According to a recent Cushman & Wakefield Capital Markets Report, the IOS sector has emerged as a pivotal component in the logistics and supply chain landscape, particularly in the context of the rapid growth of e-commerce. Their analysis shows that IOS rental growth has outstripped that of the broader logistics market, supporting the investment thesis of this asset class. Since the beginning of 2019, IOS rents have more than doubled across the East Coast (101.8%), and compares to 78.4% for the broader logistics sector over the same period. A scarcity of land and continued demand from competing land uses for a higher and better use is expected to drive continued rental outperformance in 2025. 

The sale of 59 Glendenning Road, Glendenning was brokered by Colliers’ Gavin Bishop, Sean Thomson, Michael Crombie and Trent Gallagher. 

*As of 3 December 2024