16 September 2015
Property investment and asset management company, Propertylink, is opening a new Australian industrial property fund targeting $700 million in assets with a cornerstone investment from Townsend Group.
The Propertylink Australian Industrial Partnership II (PAIP II) is seeking to capitalise on strong investor demand for industrial property combined with active lease management and capital investment. Propertylink is targeting equity of $300 million for PAIP II and is well progressed with a number of other investors to enter the new fund.
The launch follows the highly successful Propertylink Australian Industrial Partnership I (PAIP I) which opened in early 2014 with the backing Goldman Sachs and Grosvenor Group and has since grown to 36 assets worth approximately $700 million.
Stuart Dawes, CEO said:
“Propertylink has demonstrated its commitment to the Australian industrial sector and this fund will continue that focus. PAIP II is targeting a mixture of longer lease assets together with short WALE properties to build a portfolio where value can be added from active lease management and capital investment. We’ve delivered strong double-digit returns from this strategy and are forecasting the same for PAIP II.
“By building a diversified portfolio, together with an inexpensive cost of debt, Propertylink can achieve double digit distribution yields from the fund. This is consistent with Propertylink’s approach to investment vehicles, where the majority of the target investment return is delivered through regular distributions,” Mr Dawes said.
In establishing the new fund, Propertylink has already exchanged contracts for the purchase of 2 Costello Place, Seven Hills in Sydney from DEXUS Wholesale Property Fund for $14.87 million.
Peter McDonald, Executive Director and Head of Property said: “This property provides a great seed asset for PAIP II, importantly starting with Australia’s strongest industrial market of Sydney. The asset provides a good mix of short term income with the ability to generate strong upside in returns over the medium term.”
Propertylink is a leading Australian real estate and infrastructure fund manager with more than $2 billion in assets under management and over $700 million of assets acquired throughout 2014.