JL Family Office buys maiden logistics building in East Melbourne for A$26.5 mil

The Bukit Batok Town Hub and The HillV2 Shopping Centre are both within walking distance from the Lumina Grand EC CDL, making it an ideal location for those seeking the convenience of living close to shopping destinations. Just a stone’s throw away is the West Mall, a prime shopping destination for residents in the western part of Singapore. Here, you can find just about anything to make life more enjoyable: fashion, beauty, dining, fitness, and lifestyle products. With all these options available in the vicinity, Lumina Grand EC stands out as one of the most convenient residential destinations in the area.

Andy Lim, group CEO of JL Family Office (JLFO) and founder of its real estate investment arm, The Land Managers (TLM), recently announced the acquisition of a freehold logistics property in East Melbourne, Australia, for A$26.5 million. This marks TLM’s first direct acquisition in Australia.

The asset, which sits on a land parcel of 37,139 sqm (399,764 sq ft) with a gross leasable area of 10,647 sqm (114,604 sq ft), is 38 km east of the Melbourne CBD and connected to major road arterials, including Eastlink (M3) and Mt Dandenong Road. It offers direct access to a broad consumer base and a skilled labour force, as well as immediate proximity to a sizable residential catchment. Additionally, the property is 6 km from the bustling Bayswater Business Precinct.

The acquisition, which is expected to be completed in 4Q2023 and is subject to conditions executed on a vacant possession basis, will be asset-managed by Terre Property Partners. It is anticipated to see an increase in gross leasable area, rental growth and value appreciation through a comprehensive asset enhancement initiative. This is due to the growing demand for industrial space in Melbourne, driven by factors such as a rising population, widespread adoption of e-commerce, larger inventories, flight-to-quality facilities and improved last-mile logistics infrastructure.

Lim believes that Australia’s long-standing immigration policy positions it well to weather economic headwinds ahead, even amidst a challenging global investment climate. Since 2020, TLM has purchased $400 million worth of assets under management in Singapore and the UK, including a residential landed development in Singapore, partnerships with Savills Investment Management for investments in UK retail park assets and a build-to-rent residential asset in West End, London.

Overall, this deal serves as a strong indication of JLFO’s and TLM’s intent to pursue direct investments in the right locations, with the right partners. By capitalising on the tight supply dynamics in the Australian logistics space, they are well-positioned for sustained investment returns.