Sovereign wealth fund GIC and an Australian real estate Reit Dexus have established a joint venture: Dexus Australian Logistics Trust. The Trust is worth A$2 billion to invest in logistics properties, reported The Strait Times.
Mr Lee Kok Sun, chief investment officer of GIC’s real estate division, said: “This investment reflects GIC’s confidence in the long-term potential of Australia’s logistics sector.
“We believe the structural and consumption growth in Australia, particularly from favourable demographics and growth in e-commerce, will continue to drive demand for logistics properties.”
GIC will be the joint venture’s investor with an initial 25% investment, and will gain an additional 24% by 2020. In addition, the company will also have initial 49% interest in the project’s seed development.