Blackstone’s Big Ticket Deal for Stake in Dexus Logistics Fund

Singapore-based GIC has sold its 49 per cent stake in the multi-billion-dollar Dexus Australian Logistics Trust in a show-stopping deal for Australia’s commercial property end-of-year finale.

It has been acquired for an undisclosed sum by global investment powerhouse Blackstone in what it has described as its “largest investment in Asia”.

Blackstone’s Core+ Real Estate has signed a binding agreement to purchase GIC’s joint venture interest in the $3.5-billion trust, which is run by ASX-listed Dexus.

The big-ticket industrial play is part of the US-based private equity giant’s investment strategy that focuses on logistics, residential, office, life science office and retail assets in gateway cities.

It has been secured as the Covid-accelerated e-commerce boom and supply chain disruption continues to unfold.

“The transaction significantly increases our Asia Core+ Real Estate exposure to the logistics space and is consistent with our strategy of overweighting high conviction sectors and locations,” head of Core+ Real Estate Frank Cohen said in a statement.

The acquisition followed an “unsolicited proposal” by Blackstone and the trust’s existing management arrangements will remain unchanged.

Dexus chief executive Darren Steinberg said it had been pleased to have worked with GIC to grow the portfolio.

“This new relationship provides a stable long-term source of capital to invest alongside us,” he said. “We welcome Blackstone onto our platform and look forward to continuing to drive the partnership’s strong performance.”

The Dexus Australian Logistics Trust was established November 2018 with GIC acquiring an initial 25 per cent interest. It was seeded with 55 assets from the Dexus industrial portfolio comprising core logistics properties and a development landbank.

It has since grown through GIC’s acquisition of an additional 24 per cent interest, external acquisitions and the build out of the development pipeline that currently has exposure to 77 assets.

The portfolio is weighted to traditional logistics facilities, mostly in News South Wales and Victoria, which are leveraged to the growth of e-commerce.