(MELBOURNE, AUSTRALIA) – Hines, the global real estate investment, development, and property manager, announced today that Hines Asia Property Partners (“HAPP” or the “Fund”), the firm’s flagship commingled Asia Pacific core plus fund, has expanded into the cold storage sector with an acquisition in Queensland, Australia. The deal marks the second acquisition by HAPP in Queensland and the seventh industrial and logistics asset acquired by the fund in Australia.
“We are seeing increased demand for the cold storage sector not just in Australia, but across Asia Pacific as consumer appetite continues to shift post-COVID towards online grocery and meal deliveries,” commented Chiang Ling Ng, chief investment officer, Asia at Hines. “Investments such as these are vital as economies are recognizing the importance of addressing the shortage in supply of reliable refrigerated facilities, particularly for the storage of fresh produce, vaccines and other non-discretionary goods, so Hines is looking forward to bringing our best-in-class global expertise to develop cold-storage spaces like this across Asia Pacific.”
Located at 31 Lahrs Road in Ormeau Queensland, the asset is 11,175 square meters and is in an established industrial precinct which has developed over time into a hub for cold storage occupiers, with great connectivity to Brisbane, the Gold Coast and regional Queensland. The property is adjacent to the M1 motorway and can be accessed in both directions via the Lahrs Road on and off ramps. This location appeals to a broad cross-section of high-caliber logistics tenants.
“Australia is a leader, along with China and India, when it comes to growing demand for cold storage space. In addition to the macroeconomic tailwinds experienced by the sector, new building technologies and standards are reducing the outdated perceived risk of cold storage investment,” said Alysia Reilly, head of industrial and logistics, Australia at Hines. “The development at Ormeau is a strategic opportunity to capitalize on the current dislocation in supply and demand dynamics, with the latest leasing statistics showing an extremely tight leasing market across the entire East Coast of Australia.”
Since 2020, Hines has secured 11 logistics assets in Asia Pacific totaling 633,192 square meters (6.81 million square feet) over seven cities in Australia, China, Japan, South Korea, and Singapore. The latest Australian acquisition aims to give Hines even greater scale and generate more investor interest in the region.
On a global scale, Hines has invested nearly USD 8 billion in the industrial and logistics sector across more than 5.5 million square meters (59 million square feet.)
Hines is a global real estate investment, development and property manager. The firm was founded by Gerald D. Hines in 1957 and now operates in 28 countries. We manage a $92.3B¹ portfolio of high-performing assets across residential, logistics, retail, office, and mixed-use strategies. Our local teams serve 634 properties totaling over 225 million square feet globally. We are committed to a net zero carbon target by 2040 without buying offsets. To learn more about Hines, visit www.hines.com and follow @Hines on social media.
¹Includes both the global Hines organization as well as RIA AUM as of June 30, 2022.