GIC , the Singapore sovereign wealth fund, and Dexus, a Sydney-based real estate investment group, formed a joint venture to invest roughly A$2 billion ($1.5 billion) in logistics properties in Australia.
In separate news releases, GIC and Dexus said the venture, Dexus Australian Logistics Trust, will be seeded with A$1.4 billion of core logistics properties from Dexus' existing industry portfolio and three properties in the Australian firm's development land bank with completion value of around A$500 million.
The Dexus news release said the joint venture will be "open-ended with an indefinite term and an active acquisition and development mandate."
Both news releases said GIC will make an initial 25% investing in the A$1.4 billion core portfolio, with put and call rights to acquire an additional 24% by June 2020, as well as a 49% interest in the development land bank.
A Dexus spokeswoman said that would bring the initial investment by GIC in the venture to A$425 million. She declined to provide a figure for GIC's total investment should it exercise its put and call options to take the additional 24%, noting that would depend on the value of those properties at the time.
The Dexus news release said other investors might be added in the future, "potentially reducing Dexus' ownership stake over time."
GIC is estimated to have portfolio assets valued at well above $300 billion. For years now the sovereign wealth fund has declined to provide information on the size of its portfolio, saying only that it is well over $100 billion.
With the establishment of Dexus Australian Logistics Trust, Dexus said it has A$27.2 billion in assets under management.
