Burstone Group’s Australian JV with Irongate Group has established a new industrial programmatic JV agreement with credit and real estate investing platform, TPG Angelo Gordon which has concluded the acquisition of A$280 million of industrial/logistics assets in New South Wales and Queensland, deploying approximately A$133 million of equity into four assets.
This follows Burstone’s conclusion of a strategic partnership with its European PEL platform in November 2024 and funds managed by affiliates of Blackstone Inc.
“The Programmatic JV aligns with Burstone’s fund and asset management strategy, leveraging internal expertise to deliver strong total returns to Burstone and its capital partners. The provision of investment and management capability alongside globally recognised capital partners further enhances the overall return to Burstone and demonstrates the Group’s ability to deliver on its stated strategy of expanding its fund and asset management platforms,” comments CEO of Burstone Group, Andrew Wooler.
The investments will target total returns at a JV level of approximately 15%, underpinned by moderate cash yields and potential capital value unlocking through active asset management initiatives.
“These acquisitions reflect our confidence in the long-term prospects of the industrial market in Australia. The sector has consistently shown its strength, and we see further potential for growth, particularly for investors who are able to identify undervalued assets in strategic locations,” says Irongate CEO, Graeme Katz.
Burstone formed a 50% interest JV with Irongate Group in March 2023 which has grown third-party assets under management in Australia by over 40%.
