Logistics on the radar for Lowy-backed real estate fund
Source: Financial Review
Larry Schlesinger
Lowy family-backed Assembly Funds Management has increased its exposure to the booming logistics sector after acquiring two last-mile delivery properties in Melbourne for a combined $53 million.
The latest acquisitions comprise a 2.5ha site at 55 Raglan Street in Preston, nine kilometres from the Melbourne CBD, purchased for $42.25 million on a 4.5 per cent yield; and a 13,723 sq m site at 345-353 South Gippsland Highway in Dandenong South in the city’s south-east, purchased for $10.7 million.
The Dandenong South property was purchased for $10.7m
They are the fourth and fifth industrial properties acquired by the $350 million Assembly Diversified Property Fund 1, which launched in 2019 following a $75 million cornerstone investment from the Lowy Family Group, founders of the Westfield mall empire, and a $65 million injection from private equity firm Alceon.
The Preston site was acquired from interests tied to prominent Melbourne developer (and former Carlton Football Club president) Mark LoGiudice and Stewart Baron of investment and development company Baron Corporation. It houses four adjoining warehouses leased to tenants that include Victoria Police and Finnish food packaging manufacturer Huhtamaki.
The Dandenong South property was purchased with a two-year sale-and-leaseback to the owners of camping goods retailer, Aussie Disposals, which avoided liquidation in 2020 after securing a rescue deal with its creditors.
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