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One of Canada's largest pension funds has joined cornerstone investors connected to CBRE IM Indirect to bolster the Aliro Group Industrial Vehicle (AGIV), committing up to $800 million for new acquisitions in Australian industrial property.
Founded in 2018, AGIV is Aliro Group's flagship open-ended industrial vehicle with a portfolio of 12 assets it expects will be worth $2.2 billion on completion, including high-quality estates in Caringbah (NSW), Geebung (QLD), Dandenong South (VIC) and Tottenham (VIC).
The new funding support from the Public Sector Pension Investment Board (PSP Investments) comes after the vehicle recently upsized its $1.3 billion sustainability-linked loan.
PSP Investments plans to help AGIV leverage strong market conditions to acquire, manage and develop prime institutional-grade assets across key eastern seaboard locations and supply-constrained infill areas.
The Canadian group, linked to the pension plans of government employees, currently manages close to C$300 billion ($335 billion) in assets including a strong presence in Australia across multiple asset classes
Aliro Group co-founder, managing director and CEO Daniel Wise says the partnership further strengthens AGIV's ability to identify and execute on high-calibre investments, ensuring it continues to access and deliver enduring value for customers.
"We’re pleased to see continued growth with our flagship vehicle, which reflects the strong demand for industrial specific strategies in the Australian market," Wise says.
"As we look ahead, we foresee further opportunities that align with Aliro’s growth trajectory and our commitment to disciplined, sustainable investment practices."
Aliro Group co-founder and executive chairman David Southon says PSP Investments' global standing and long-term investment mindset make it a "strategic fit".
"Welcoming PSP Investments as another cornerstone investor in AGIV, alongside our existing and highly valued investors who are clients of CBRE IM’s Indirect business, marks a significant milestone for the vehicle and Aliro Group," he says.
"The enlarged partnership strengthens our ability to scale with discipline, whilst leveraging the momentum we have generated in the build-up of AGIVs high quality portfolio and the outperformance already delivered for our existing investors."
PSP Investments is "delighted" to partner with Aliro Group and CBRE IM on this logistics portfolio, according to its managing director, and head of Europe and Asia-Pacific, Stephane Jalbert.
"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," Jalbert says.
Alex Crossing, the head of APAC for CBRE IM’s Indirect business, believes the addition of PSP Investments’ capital will "further enhance the diversification and scale of this vehicle for the benefit of all investors".
"We look forward to continue supporting AGIV’s growth over time," Crossing says.
"Working with the Aliro Group on AGIV since 2018 has given our clients access to a high-quality portfolio in preferred submarkets across eastern Australia.
"Industrial and logistics real estate has long been a preferred investment theme in the Asia Pacific."
CBRE Capital Advisors and Macquarie Capital acted as financial advisers to Aliro Group.
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