Gateway Capital has deepened its focus on the Australian industrial and logistics sector through the launch of a new core vehicle, Gateway Capital Industrial and Logistics Partnership (GILP).

This new vehicle has been established with capital support from leading institutional investors with a focus on the east coast markets to build out an A$800 million portfolio.

Gateway Capital will target opportunities in areas that are forecast to benefit from strong tenant demand linked with the growth of e-commerce, together with other structural tailwinds that continue to support the industrial and logistics sector.

GILP has been seeded with 2 assets, 9-15 Chilvers Road, Thornleigh, NSW which was recently developed by Gateway Capital, and 655 Sommerville Road, Sunshine, VIC for a combined $111m.

These seed assets provide 31,033 sqm of GLA leased to strong tenants such as CSR, TLE and Select Hire.

In addition to the seed assets, Gateway Capital has exchanged contracts for the acquisition of 12 Kangaroo Avenue, Eastern Creek, NSW for $75m, taking total assets within GILP to $186m, with a strong allocation to Sydney over 82%.

This Eastern Creek asset provides 20,861 sqm of prime GLA, leased to Keuhne & Nagel, one of the world's leading logistics providers.

Stuart Dawes, Co-Founder and Gateway Capital CEO, commented:

“The establishment of GILP targeting core assets complements the existing Gateway Capital funds that focus on core plus and value add opportunities, and as such provides Gateway Capital with a broader scope to seek attractive acquisition opportunities.

The acquisition of 12 Kangaroo Avenue, Eastern Creek is a strong addition to the GILP portfolio, providing additional exposure to the key Sydney market whilst securing a new relationship with a leading global logistics provider.”

Peter McDonald, Co-Founder and Gateway Capital Chief Investment Officer, said:

“This acquisition is another example of Gateway Capital acquiring modern and functional buildings well below replacement cost.

“The Australian industrial and logistics market will continue to be powered by strong population growth well into the future. This Western Sydney precinct ranks within the top quartile of locations in Australia with regards to future population growth and improving road infrastructure, two of the biggest valuation drivers in our market”