(Reuters) – AustralianSuper, the country’s largest pension fund, said on Monday it has acquired a 50% stake in an A$1.4 billion ($859.18 million) portfolio of European warehouses owned by Oxford Properties, the real estate vehicle of Ontario Municipal Employees Retirement System.
European logistics, particularly warehouses, have proven to be attractive investments in an otherwise struggling real estate market, with the e-commerce boom creating demand for space.
Last year, private equity giant Blackstone agreed to buy an 80% stake in a European warehouse portfolio run by landlord Burstone.
AustralianSuper would gain access to a portfolio that includes European urban logistics and distribution warehouses across 76 assets as well as co-ownership of M7 Real Estate, an investment and asset manager.
“We believe urban logistics and distribution represents one of the most compelling sector opportunities in European real estate today,” said Paul Clark, head of European real assets at AustralianSuper.
The parties aim to grow the joint venture to a valuation of A$7.5 billion in the next three to five years.
$1 = 1.6295 Australian dollars)
(Reporting by Sneha Kumar in Bengaluru; Editing by Krishna Chandra Eluri)
