Stockland Forms A Joint Venture Capital Partnership With JP Morgan

Stockland Forms A Joint Venture Capital Partnership With JP Morgan

The country’s fourth-largest owner of industrial and logistics assets, Stockland, has formed a joint venture capital partnership with JP Morgan Asset Management to acquire a portfolio of industrial properties that they will expand to $1 billion worth over the next three years.

The partnership, to be seeded with two properties worth a collective $110 million which Stockland recently acquired in Melbourne, would grow to $400 million by mid-2021 as stated by ASX-listed Stockland. While Stockland has already entered into capital partnerships for residential property such as with Bangkok-listed Supalai PCL, outgoing chief executive Mark Steinert has been criticised for not striking similar deals in the commercial. This deal comes just six months before he hands over the reins to incoming boss Tarun Gupta.

Mr Steinert said the company only became able to enter into joint ownership of these assets after first fulfilling its core strategy to boost its exposure to the asset class. “In logistics, we’ve been seeking to increase our balance sheet weighting,” he told The Australian Financial Review. “Before having seen a significant increase in the last 5 years, we’ve doubled our allocation. Last year we increased it… to just under 30 per cent and our goal is to at least one-third. Sharing ownership of assets before up weighting up would have been contrary to our strategic goals.”

The company said the first two properties in the portfolio will be Stockland’s 151 Leakes Road, Truganina, in Melbourne’s west and 140S Paramount Boulevard, Cranbourne West, in the city’s south-east. The purchase of other properties from unidentified third parties would bring the total to $200 million and the partnership would then acquire a further $200 million worth of existing assets in Stockland’s logistics portfolio.

The joint venture is focused on established assets with reliable income streams, purchase on market and primarily located along the high-performing eastern seaboard. While JP Morgan would put a minimum of $500 million into the partnership, the two parties may not own some assets equally, Mr Steinert said. That way they don’t get stuck if JP’s want an asset, and are willing to pay a price higher than Stockland would be able to justify with their cost of capital. As result, the return to Stockland will meet their hurdle rate, as the fees accruing to them on their 20 per cent equity will lift their returns.

Stockland will make asset management fees from managing the fund as well as property management fees from operating the properties. Have lots of free time and like risk? Why not to head for an online casino and hit a nerve. Exciting games, luring sounds, big money, promise of easy money… What you have to do is to find Australian legitimate online casinos! And the site is here at your fingertips to help you to take what I wanted from life. JP Morgan’s US ownership means all the acquisitions will be subject to approval by the Foreign Investment Review Board.

David Chen, JP Morgan Global Alternatives’ chief investment officer for real estate Asia-Pacific, says they are excited to form this long-term logistics partnership with Stockland, one of Australia’s largest diversified property groups and a recognised leader in sustainability and diversity. Stockland is uniquely well-positioned to capitalise on the growing demand for logistics across many supply-constrained markets and brings strong relationships with occupiers and end-users.

Stockland last year also said it would seek a capital partner to co-fund the redevelopment of its 133 Castlereagh Street head office in Sydney into a $1 billion-plus office tower. Stockland shares were trading up 14¢, or 3.4 per cent, at $4.30 last Wednesday.


  • Stockland sets up $1b logistics, industrial capital partnership

by Micheal Bleby

  • Stockland makes $18om move on Melbourne land Deal

  • Mark Steinert leaves unfinished business at Stockland

By Micheal Bleby