GPT Group partners to unlock $1bn in logistics opportunities

GPT Group has formed a new Australian logistics joint venture with QuadReal Property Group to target $1 billion in logistics assets on the east coast.

Known as GPT QuadReal Logistics Trust 2 (GQLT2), it will serve as the primary vehicle for QuadReal to scale its Australian logistics investments and will be operated and managed by GPT.

The partnership will be seeded with approximately $460 million of high-quality, stabilised logistics assets located in east coast urban infill and middle ring areas. Once established, they will target further growth deployment of $500 million, focusing on acquisitions of stabilised, core plus opportunities on the east coast.

GPT will sell down several balance sheet assets at book value to seed the partnership and will retain a 20% co-investment interest. Net proceeds of around $410 million will be used to reduce gearing until re-invested, it added.

Meanwhile, QuadReal's 80% stake is valued at $400 million.

GPT's chief executive and managing director Russell Proutt said the alliance aligns with the company's strategy.

"We are pleased to have been able to activate the partnership's formation by providing a foundational portfolio of assets from our direct property holdings," Proutt said.

"GQLT2 builds upon the established relationship between our organisations that spans the logistics and living sectors, and we look forward to delivering on its strategy."

QuadReal managing director Asia Nat Miller is pleased to expand its strategic investments in Australia.

"The transaction has strong market fundamentals and reflects our high conviction investment strategy which seeks to build portfolios that are resilient across economic cycles," Miller said.

The transaction is targeted to be completed by July this year and is not expected to have a material impact on GPT's 2025 earnings.