Rest, one of Australia’s largest profit-to-member superannuation funds, has completed a joint acquisition with real estate investment manager Barings of an off-market premium industrial portfolio worth approximately A$780 million from Goodman Group.
This significant acquisition – comprising 12 assets and 17 tenants across approximately 70 hectares of underlying land and approximately 340,000 square metres of total leasable area in Sydney and Melbourne – further cements the relationship between Barings and Rest.
The assets are leased to global top-tier tenants including Metcash, Super Retail Group, Pack Rack, Iron Mountain, and Amazon.
This is the next step in the industrial property venture announced by Rest and Barings last year, which saw them purchase their first industrial asset at Saintly Drive Truganina in Melbourne.
Andrew Lill, Rest’s Chief Investment Officer, said the new industrial investments were expected to add diversification benefits to the fund’s property holdings and deliver good long-term results for its 2 million members.
“Rest is excited to continue working with Barings by expanding our exposure to industrial investments in Australia through the acquisition of this high-quality portfolio from Goodman Group,” said Mr Lill.
“After investing successfully in the US industrial property sector and committing to a venture targeting the UK and Europe, we're pleased to now increase our presence in the Australian market where there is continued strong demand for industrial property.
“We’re confident about our plan to continue investment in industrial property with Barings. We believe there's value in purchasing well-located industrial assets and we expect rents to increase materially over time.”
“Rest is excited to continue working with Barings by expanding our exposure to industrial investments in Australia through the acquisition of this high-quality portfolio from Goodman Group,” said Mr Lill.
“After investing successfully in the US industrial property sector and committing to a venture targeting the UK and Europe, we're pleased to
now increase our presence in the Australian market where there is continued strong demand for industrial property.
“We’re confident about our plan to continue investment in industrial property with Barings. We believe there's value in purchasing well-located industrial assets and we expect rents to increase materially over time.”
The portfolio includes Australia’s largest warehouse, an approximately 115,000 square metre ‘mega shed’ in Melbourne’s west for Metcash. This will be Metcash’s main distribution facility, an ambient warehouse with significant automation technology, a chiller and freezer area, as well as a modern new office. This facility is over 700 metres in length and equivalent to the size of 15 football fields and will be the key cog in the Victorian operations of the grocery wholesaler and its network of IGA supermarkets.
The Sydney assets comprise a mix of functional single tenanted and multi-tenanted industrial estates well located in sought after core infill locations experiencing strong market rent growth. The Melbourne assets are mostly newly complete and soon to be completed assets located in premium locations with modern sustainability features and long leases to strong tenants in place.
Shaun Hannah, Barings’ Executive Director, Real Estate said the acquisition of this portfolio reflects Barings’ positive outlook for the industrial sector in Australia and aligns with an investment strategy of targeting to buy existing leased buildings with significant underlying land value at attractive pricing.
“The newer, larger, longer leased assets provide stable defensive cashflows and the shorter lease Sydney infill assets unlock the opportunity to improve the ESG features and capture rental reversion,” said Mr Hannah.
“Thanks to our long-standing relationship with the Goodman Group, we were able to procure this unique portfolio off-market. Barings undertook detailed due diligence and transacted in a relatively short timeframe.”
About Rest
Established in 1988, Rest is one of Australia’s largest profit-to-member superannuation funds, with around two million members and around $85 billion in funds under management as at 31 March 2024.
About Barings
Barings is a US$406+ billion (as at 31 March 2024) global asset management firm that partners with institutional, insurance, and intermediary clients, and supports leading businesses with flexible financing solutions. The firm, a subsidiary of MassMutual, seeks to deliver excess returns by leveraging its global scale and capabilities across public and private markets in fixed income, real assets and capital solutions. Learn more at www.barings.com.
For more information, please visit our media centre or contact:
Michael Mills
Senior Manager, Communications – Media Relations
michael.mills@rest.com.au
m: 0428 499 722
Emma Kerswell
Senior Manager, Communications – Consumer and Content
emma.kerswell@rest.com.au
m: 0498 709 830
This information has been prepared without taking account of your objectives, financial situation or needs. Before acting on the information or deciding whether to acquire or hold a product, consider its appropriateness and the relevant PDS and TMD which is available at rest.com.au/pds. Issued by Retail Employees Superannuation Pty Limited ABN 39 001 987 739, AFSL 24 0003 (Rest), trustee of Retail Employees Superannuation Trust ABN 62 653 671 394
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