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

The Land Managers (TLM), JL Family Office’s real estate investment arm, and other co-investors have 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.

Andy Lim, group CEO of JLFO and founder of TLM, commented on the opportunity saying, “We believe there is a window of opportunity to capitalise on the tight supply dynamics in the Australian logistics space.” The conditions of the acquisition are being carried out on a vacant possession basis, and the expected completion date is 4Q2023.

The asset 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). It has great transportation links, 38 km from the Melbourne CBD and connected by major roads such as Eastlink (M3) and Mt Dandenong Road. This gives occupiers direct access to a broad consumer base and a skilled labour force. In addition, the property is just 6km from the Bayswater Business Precinct, the Eastern Metro Region’s second-largest employment hub.

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Schools and shopping malls in the vicinity are also within reach. Bukit Panjang EC dwellers will have an exciting lifestyle of convenience and luxury with the development’s modern facilities.

Terre Property Partners (TPP) will be asset-managing the property, an Australian-based asset manager with over 15 years experience in the industrial and logistics space. An asset enhancement initiative is underway, and it is expected to bring an increase in gross leasable area, rental growth and value appreciation. This is partly due to factors such as the growing population, the application of e-commerce, the need for larger inventories, flight-to-quality facilities, and continued development of last-mile logistics infrastructure.

Lim also believes strongly that Australia is well positioned to weather economic headwinds due to its long-standing immigration policy. Since 2020, TLM has purchased investments worth a total of $400 million in Singapore and UK, including a residential landed development in Singapore, partnerships with Savills Investment Management for UK retail park assets and build-to-rent residential assets as well as a direct acquisition of an office building in prime West End of London.