C&G capitalises on ILP Industrial Fund

Commercial & General capitalises on ILP industrial fund to seed next investments in defence and logistics.

• ILP industrial fund launched as JV in 2018 seeded by Commercial & General assets
• Fund value has grown >$370m in past four years
• Commercial & General now recapitalising its investment in preparation for next wave of national defence and logistics projects

Commercial & General has successfully concluded its joint venture industrial fund with Singapore-based Straits Real Estate (SRE) after four years of strong results.

The Integrated Logistics Partners fund was launched in September 2018 and was seeded with blue chip Commercial & General industrial assets worth $130 million.

Tenants include Coca-Cola Europacific, Raytheon, Visy Glass and Incitec Pivot in South Australia and the national headquarters of defence company Siemens in Melbourne.

The fund has consistently delivered above its target annual rate of return of 15 per cent and has grown to a value of almost $500 million.

Commercial & General has now successfully sold its share in the fund to SRE with the transaction settling on 30 September.

Quotes attributable to Commercial & General CEO Trevor Cooke:

“It has been very satisfying to have seeded a portfolio that has delivered such strong returns, and this is a positive conclusion to what has been a very beneficial joint venture relationship.

“We are proud to have been the enabler for SRE’s entry into the industrial and logistics market and we wish them well in the management of a portfolio that features so many Commercial & General assets.

“After four years of sustained growth, the timing was right for us to capitalise on our investment in readiness to seed our next wave of projects in the defence and logistics sectors and further our national expansion.

“We see significant emerging opportunities to replicate the types of returns we have been generating for our investors for the past 15 years and anticipate making market announcements in the coming months.”