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JL Family Office buys maiden logistics building in East Melbourne for A$26.5 mil

/ EdgeProp Singapore |

October 28, 2023 9:26 PM SGT

The logistics property at 40 Garden Street in East Melbourne, Australia (Photo: The Land Managers/JL Family Office)

JL Family Office’s real estate investment arm, The Land Managers (TLM), and other co-investors announced the acquisition of freehold logistics property at 40 Garden Street in East Melbourne, Australia, for A$26.5 million.

The deal marks TLM’s first direct acquisition in Australia, says Andy Lim, group CEO of JLFO and founder of TLM. “We believe there is a window of opportunity to capitalise on the tight supply dynamics in the Australian logistics space,” he adds. The acquisition is subject to conditions and is executed on a vacant possession basis. The deal is expected to be completed in 4Q2023.

The asset sits on a land parcel of 37,139 sqm (399,764 sq ft) with a gross leasable area of 10,647 sqm (114,604 sq ft). It is 38 km east of the Melbourne CBD, with accessibility via major road arterials, including Eastlink (M3) and Mt Dandenong Road. These transportation links connect the CBD and Victoria’s distribution networks.

The location offers immediate proximity to a sizable residential catchment. This ensures occupiers direct access to a broad consumer base and a skilled labour force. Furthermore, the asset is 6 km from the bustling Bayswater Business Precinct, the Eastern Metro Region's second-largest employment hub, with over 5,000 diverse businesses across various industries and more than 30,000 local professional workers.

The property will be asset-managed by Terre Property Partners (TPP), an Australian-based asset manager with over 15 years of experience in the Australian industrial and logistics space.

It is expected to see an increase in gross leasable area, rental growth and value appreciation through a comprehensive asset enhancement initiative. It will be supported by the growing demand for industrial space in Melbourne, driven by factors such as the growing population, widespread adoption of e-commerce, the need for larger inventories, flight-to-quality facilities, and the ongoing improvement of last-mile logistics infrastructure.

Despite a challenging global investment climate, JL Family Office’s Lim feels strongly that Australia’s long-standing immigration policy puts it in a good position to weather economic headwinds ahead.

Since 2020, TLM purchased $400 million worth of assets under management in Singapore and the UK. These investments include a residential landed development in Singapore, partnerships with Savills Investment Management for investments in UK retail park assets and build-to-rent residential assets as well as a recent opportunistic direct acquisition of an office building in prime West End of London.

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