UniSuper expands logistics portfolio with ‘prime’ land buyout

15 February 2024
| By Jessica Penny |
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UniSuper has acquired surplus land from Orica for $260 million, taking its unlisted property holdings to $8 billion.

Located 15 kilometres west of Melbourne CBD, UniSuper said the 66-hectare development site has the potential to accommodate over 330,000 square metres of “prime” logistics and warehouse space once fully developed.

UniSuper’s senior manager for property, Nick Stephens, said the acquisition is evidence of the fund’s capacity to “secure high-quality property investments that help our members grow their retirement savings”.

“This super prime parcel of industrial land further improves the quality of our diversified unlisted property portfolio and adds to our exposure to the logistics and warehousing sector following on from other recent acquisitions,” Mr Stephens added.

According to the fund, the site will be able to deliver modern industrial accommodation within the “increasingly constrained West Melbourne industrial precinct”, while targeting a five-star NABERS Energy rating upon completion.

The purchase was negotiated together with UniSuper’s adviser, GPT, as part of an approximately $3 billion separate account direct property mandate with UniSuper.

UniSuper further confirmed that, together with GPT and developer HB+B Property, it will progressively develop the site over the coming years with a forecast end value upwards of $1 billion.

GPT’s head of separate accounts, Greg Paddison, said: “The acquisition of surplus land at Deer Park for UniSuper is testament to our ability to acquire, develop and manage high-quality real estate investments together with our mandate clients.”

“We continue to leverage our expertise and experience to deliver strong outcomes for our capital partners and provide further growth opportunities in time,” Mr Paddison added.

In August, UniSuper acquired a 50 per cent interest in an industrial property portfolio for $500 million.

The 340-square-metre portfolio, which comprises assets across Sydney and Melbourne, was acquired from the National Pension Service of Korea.

Tenants on the portfolio’s property include Coles, Roche, Blackwoods and UPS, and UniSuper will invest alongside existing co-owners Dexus and Blackstone.

That was the second major industrial purchase by the fund in 2023 after it invested $105 million in a 13-hectare industrial property in Melbourne. Last year, UniSuper said that the site would benefit from major infrastructure projects, such as the West Gate Tunnel and Fishermans Bend urban renewal project.

 

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