A strategic alliance has been formed between GPT Group and QuadReal Property Group to advance logistics infrastructure within Australia’s urban fringe and secondary suburban zones. This partnership seeks to harness key sites positioned to meet growing demand for efficient distribution hubs near metropolitan centers.
Launching as GPT QuadReal Logistics Trust 2 (GQLT2), the venture will initially manage a portfolio valued near $460 million, comprised of logistics properties along the eastern coast. Plans are in place to deploy an additional $500 million toward acquiring stable, high-quality assets in prominent markets on the east coast. Acting as QuadReal’s main vehicle for expanding logistics holdings domestically, the trust will be overseen by GPT. To seed the partnership, GPT will contribute selected assets at book value, based on independent valuations from the end of 2024, holding onto a 20% portion of the investment.
After the deal, the group plans to apply around $410 million in net proceeds to lower its debt levels before deploying the funds into new investments, while QuadReal is set to invest roughly $400 million to acquire an 80 percent share in the partnership.
Nat Miller, responsible for QuadReal’s Asian operations, highlighted the company’s eagerness to deepen its investment engagement in Australia through a partnership with a trusted entity like GPT. He pointed to strong market conditions underpinning the deal and emphasized QuadReal’s commitment to developing resilient portfolios capable of navigating diverse economic environments.
On the other hand, Russell Proutt, CEO and Managing Director of GPT, remarked that the creation of GQLT2 aligns with the company’s strategic goal to enhance collaborations by crafting focused investment programs. He noted GPT’s contribution of a core portfolio of assets from its direct property holdings as essential to launching the venture. Building on a well-established relationship across multiple sectors, both organizations are concentrated on driving the new trust’s growth initiatives. The parties aim to finalize the transaction by July 2025, contingent upon receiving the necessary clearances from the Foreign Investment Review Board.
