Frasers Property Industrial enters JV to invest in A$600 million Aussie industrial portfolio

Frasers Property Industrial has entered into a capital partnership with an investment vehicle sponsored by Morgan Stanley Real Estate Investing for industrial assets in Australia.

The 50:50 joint venture (JV) covers a portfolio of eight industrial assets valued at about A$600 million (S$501 million), said Frasers Property on Thursday (Apr 17).

Spanning a total gross floor area of 188,000 square metres, the properties are located across Sydney and Brisbane.

The assets are fully leased, with 11 tenants including supply chain solutions provider Primary Connect, National Tiles which supplies flooring products, as well as retail company Williams Sonoma.

The weighted average lease expiry of the portfolio is 7.7 years, and the assets have an average age of five years, said Frasers Property.

It added that the JV aims to leverage the “continued strong demand for premium industrial estates in key logistics hubs”. It is also part of Frasers Property’s strategy to “form long-term, strategic capital partnerships” to improve returns while maintaining capital efficiency.

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Earlier this week, The Business Times reported that several of Frasers Property’s senior management team will be leaving the company. They are group chief operating officer Anthony Boyd and group chief digital officer Samuel Tan, as well as Frasers Property UK’s chief financial officer Martin Ratchford and head of development Guy Morgan.

The changes follow an uneven financial showing, with its UK business in particular recording some losses. For the financial year ended Sep 30, 2024, the group’s net profit rose 19.2 per cent to S$206.3 million, and revenue increased 6.8 per cent to S$4.2 billion.

Improvements in its top and bottom lines were mainly due to contributions from residential projects in Singapore and China, and its share of fair-value gains from a JV’s industrial and logistics properties in Australia.

Frasers Property also said previously that it has been beefing up its industrial and logistics portfolio as the group looks to increase its exposure to high-performing asset classes.

Shares of Frasers Property were trading flat at S$0.77 as at 10.49 am on Thursday.