The Public Sector Pension Investment Board (PSP Investments) has committed up to $512M (A$800M) into the Aliro Group Industrial Vehicle (AGIV), providing it with substantial capacity for new acquisitions in the Australian industrial sector.
Aliro Group is an Australian property development, investment and funds management group. The vehicle is an open-ended fund, which provides a liquidity review on the fifth anniversary of the initial fund closing date and every five years thereafter, noted information on Aliro’s website.
It also noted the 12 assets under the AGIV investment are well located in core markets (predominantly Sydney and Melbourne) with proximity to infrastructure and arterial road networks. Investors in the fund benefits from a core-plus strategy that delivers attractive risk-adjusted returns. Its balanced portfolio is comprised of 70% equity in stabilized and enhanced assets, as well as 30% in development projects.
The $218B (C$299.7B) PSP Investments joins clients of CBRE Investment Management’s Indirect Private Real Estate Strategy (CBRE IM Indirect) in the investment into AGIV. The Canadian pension fund will also acquire an initial interest in AGIV in addition to providing significant growth capital.
The transaction will support AGIV’s ability to leverage strong market conditions to acquire, manage and develop prime institutional-grade assets across key eastern seaboard locations and supply-constrained infill areas.
“PSP Investments is delighted to partner with Aliro Group and CBRE IM on this logistics portfolio,” said Stephane Jalbert, the pension fund’s managing director and head of Europe and Asia-Pacific, in a press release. “This investment gives us immediate scale and access to a high-quality portfolio and development pipeline, complementing our already extensive investment portfolio in Australia and aligning with PSP Investments’ Real Estate global sector convictions.”
