GPT, QuadReal Launch $1B Logistics Partnership

GPT Group and QuadReal Property Group have announced the formation of GPT QuadReal Logistics Trust 2 (GQLT2), a new A$1 billion Australian logistics partnership. The venture will initially be seeded with approximately A$460 million in high-quality, stabilized logistics assets situated in urban infill and middle-ring locations along Australia’s east coast. The partnership aims to further expand its portfolio through the acquisition of stabilized, core-plus opportunities in major east coast markets, targeting an additional deployment of A$500 million. QuadReal’s commitment totals A$400 million for an 80% stake, while GPT will retain a 20% co-investment interest, seeding the partnership with assets from its balance sheet at book value. The net proceeds to GPT, approximately A$410 million, will initially be used to reduce gearing until reinvestment opportunities arise. Russell Proutt, GPT’s CEO, emphasized the partnership aligns with their strategy to grow with partners through compelling investment programs. The transaction, expected to close by July 2025 pending FIRB approvals, is not anticipated to materially impact GPT’s 2025 earnings. This partnership signifies QuadReal’s strategic expansion in the Australian logistics sector with a trusted partner, reflecting confidence in the market’s strong fundamentals and resilience across economic cycles, according to Nat Miller, QuadReal’s Managing Director, Asia.