Gateway Capital and Cadillac Fairview acquire Urban Acres

• Gateway Capital and Cadillac Fairview, through the newly launched Gateway Capital
  Urban Logistics Partnership (GULP), have acquired Urban Acres from Dexus
  for $315m
• First acquisition for GULP, with several other opportunities in the pipeline

Gateway Capital and Cadillac Fairview have exchanged contracts for the acquisition of Urban Acres in Mount Waverly, VIC for $315.0m (less adjustments) from Dexus. With 84,892 sqm of GLA on a site area of approximately 20ha, Urban Acres represents a landmark site prominently positioned within Melbourne’s Monash precinct. The area is considered a premium last mile location with a large surrounding residential catchment and immediate access
to the M1 Monash Freeway. Urban Acres is the first acquisition in the Gateway Capital Urban Logistics Partnership (GULP), which was recently established with Cadillac Fairview, the real estate arm of Ontario Teachers’ Pension Plan. GULP has a focus on inner urban core plus, value add and development assets on the east coast markets of Australia that are forecast to benefit from strong tenant demand linked with the growth of e-commerce, together with other structural tailwinds supporting the industrial and logistics sector.

Stuart Dawes, Gateway Capital CEO, commented:
“This asset represents a solid acquisition for GULP, providing a strong mix of core-plus, value-add and development opportunities throughout the estate, aligning perfectly with the GULP strategy.

“In addition to Urban Acres, Gateway Capital have several other assets underconsideration which will see GULP  expand in both Sydney and Melbourne over the coming months. The assets being targeted will provide the opportunity for Gateway Capital to capitalise on the strong rental growth that continues across the east coast markets through active management and development”.

Peter McDonald, Gateway Capital CIO, said:
“This significant landholding in one of Melbourne’s premier infill industrial and logistics precincts, with excellent access to nearby major road infrastructure and superior last mile logistics characteristics. This is the best location in Melbourne for logistics operators, providing the greatest reach to households within a 30-minute drive time.

“Urban Acres is developed at low intensity and therefore has numerous opportunities to increase the size and scale of the estate through development of vacant land together with redevelopment of pockets of the estate to create brand new prime grade industrial and logistics product to meet the tenant demand from users within the estate and the broader market. We will immediately look to activate these opportunities post the completion of the acquisition.”