Gateway Capital acquires Urban Infill Industrial Estates in Laverton North

Gateway Capital, in partnership with Cadillac Fairview, acquires two urban infill industrial estates in Laverton North (VIC)

• Gateway Capital, in partnership with Cadillac Fairview, acquires 26-38 Pipe Road and 1-11 Gilbertson Road, Laverton North for $71.1m through the Gateway Capital Urban Logistics Partnership (GULP) vehicle
• Second & third acquisitions for GULP, with several other opportunities in the pipeline

Gateway Capital, in partnership with Cadillac Fairview, has exchanged contracts for the acquisition of two urban infill industrial estates in Melbourne for $71.1m on behalf of Gateway Capital Urban Logistics Partnership (GULP). With 56,462 sqm of GLA on a site area of approximately 9.4ha, the two land rich estates provide GULP with strong investments in the highly sought after industrial precinct of Laverton North.

Laverton North, in the inner west of Melbourne, is highly regarded for its excellent connectivity to Melbourne’s western major arterial roadworks including the Western Ring Road, West Gate Freeway, Princess Highway as well as excellent access to the Port of Melbourne and Melbourne Airport.

These two industrial estates are the second and third acquisitions in the Gateway Capital Urban Logistics Partnership (GULP) vehicle, which was recently established with a cornerstone investment from Cadillac Fairview, the real estate arm of Ontario Teachers’ Pension Plan, and immediately follow the recent acquisition of Axxess Corporate Park from Dexus.

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:
“The acquisition of these two estates complements the existing GULP portfolio, providing an attractive income yield together with timing flexibility to execute future redevelopment of each estate.

These covered land assets are highly attractive to GULP, align well with the investment strategy for the vehicle, and will continue to be pursued in the urban infill markets across the eastern seaboard.”

Casey Greenberg, Gateway Capital Head of Capital Transactions & Executive Director, said:
“Melbourne’s West is the largest industrial market in the country, and we are really pleased to be able to acquire assets of this size and magnitude in Laverton North precinct.

Acquiring these assets at land value affords GULP multiple avenues to create value through either the re-leasing of the existing improvements to maximise operating income or development of the sites into prime grade highly sustainable industrial assets.”