Barings acquires Australian Industrial Portfolio for A$780 million

Barings, one of the world’s largest diversified real estate investment managers, has completed a joint acquisition with profit-to-member superannuation fund Rest of an off-market premium industrial portfolio from Goodman Group, worth approximately A$780 million.

This significant acquisition comprising 12 assets and 17 tenants across c.70 hectares of underlying land and approximately 340,000sqm of total leasable area across Sydney and Melbourne further cements the partnership between Barings and Rest Super, one of Australia’s largest superannuation funds. The assets are leased to global top-tier tenant covenants including Metcash, Super Retail Group, Pack Rack, Iron Mountain, and Amazon.

Shaun Hannah, Executive Director, Real Estate at Barings said,

“The acquisition of this portfolio reflects Barings’ positive outlook for the industrial sector in Australia and aligns with our investment strategy of targeting to buy existing leased buildings with significant underlying land value at attractive pricing. The newer, larger, longer leased assets are more likely to provide stable defensive cashflows and the shorter lease Sydney infill assets unlock the opportunity to improve the ESG features and capture rental reversion.”

Barings and Australian superannuation fund Rest Super last year announced a A$1 billion industrial property partnership, purchasing their first industrial asset at Saintly Drive Truganina in Melbourne.

Andrew Lill, Chief Investment Officer, Rest said,

“Rest is excited to continue working with Barings by expanding our exposure to industrial investments in Australia through the acquisition of this high-quality portfolio from Goodman Group.

Read the full press release here.

Read this release as seen in The Australian Financial Review, 07 May 2024.