Abu Dhabi’s sovereign wealth fund, ADIA, has funnelled $300 million into Logos Property, the fund manager and developer now partially owned by Macquarie Capital.
The arrival of this latest deep-pocketed investor bolsters an already formidable line-up for Logos with joint ventures also struck with GIC, the Singaporean wealth fund, and Blackstone, the New York private equity giant.
According to sources, Macquarie’s unlisted property team, led by Brett Robson, reeled in ADIA as part of its new fundraising strategy. The investment bank that once made a fortune from externally-managed real estate trusts is returning to an ownership model.
However, this time round Macquarie will have no input into the operational management, rather it intends to adopt strategic stakes and pursue co-investment opportunities.
The investments will be held on the bank’s balance sheet and are likely to substantially augment the profits from its property division.
Macquarie’s unlisted real estate team started out as a placement agency but in the run-up to the global financial crisis it became a crucial investor to a number of its key clients like Charter Hall Group, in which it still holds a stake, as well as Goodman Group.
Yet as the listed sector has returned to rude health, Macquarie has sought out fresh revenue streams.
Its 30 per cent-plus investment in Logos, founded by former Goodman executives, enables it to reap a share of the profits while its co-investment mandate aligns the bank more closely to clients like ADIA.
The developer ranks as one of the sizeable players in Australia’s logistics sector and is gradually amassing a portfolio in China.
Macquarie and Logos were unavailable for comment.
This article first appeared in The Australian Business Review.