Arrow Capital Partners launches USD1bn SIRE Australia

Arrow Capital Partners, an international investor and operator of real estate in Asia-Pacific and Europe, has capital to acquire USD1 billion portfolio of Australian industrial and urban logistics property. 

The Strategic Industrial Real Estate (SIRE) will invest in core, core plus industrial and logistics assets yielding more than 5 per cent as well as vacant assets with strong lease up potential and land to facilitate a build to own strategy. It will focus on urban infill
locations across Australia’s major eastern seaboard markets and strategic transport hubs that are benefitting from structural trends in urbanisation and e-commerce growth. The team at Arrow has been one of the largest owners of strategic industrial/urban logistics assets in Australia and Europe over the last 15 years. 

Arrow will seek exposure to single and multi-let industrial, distribution warehouses, ‘last touch’ logistics, & cross docking facilities and will acquire properties in locations within urban conurbations, ports, railways, airports and assets with access to major transport networks. 

Kurt Wilkinson, Partner of Arrow Capital Partners, says: “As an investor and operator in real estate, we have flexibility around the type of acquisitions we can target. For example, we have a longer-term investment horizon than most funds, and have a flexible approach to the way we consider our investments. We’re already well advanced on three acquisitions totalling over USD100 million and also have an extensive pipeline of opportunities, including partnering with local developers seeking a long-term capital partner to help deliver assets.” 

Martyn McCarthy, Managing Partner of Arrow Capital Partners, says: “Following the successful launch of SIRE Europe, where we are now have over USD400 million worth of assets in just 12 months, we are excited to be launching the same strategy here in Australia.

“We will create value by acquiring and aggregating single assets ranging from USD5 million to USD50 million and portfolios between USD50 million to in excess of USD500 million in markets where the supply/demand dynamics support above average rental growth, and where targeted capex will enhance the assets attraction to new and existing tenants.” 

With investor partners such as AMB Capital, one of Australia’s largest family offices, over the last two years, Arrow has transacted on and managed more than USD3 billion of investments across Asia and Europe, and has a team based out of six offices globally. 

Arrow targets equity and debt investment opportunities, specialising in cross-border transactions where it can use its platform and balance sheet to invest with its US and Asia-Pacific capital partners into Europe, as well as European and US investors into the Asia- Pacific region.