Burstone Group JV expands fund management strategy in Australia with growth of industrial and logistics platform alongside TPG Angelo Gordon

Following the successful conclusion in November 2024 of a strategic partnership with Burstone’s European PEL portfolio and funds managed by affiliates of Blackstone Inc. (Blackstone), the Burstone Group has continued to progress in executing its fund and asset management strategy.

The Burstone Group’s Australian joint venture (JV) with the real estate fund manager, Irongate Group, has established an agreement with TPG Angelo Gordon, a diversified credit and real estate investing platform within TPG, with approximately US$91 billion assets under management. TPG is a leading global alternative asset management firm.

The partnership, which established a new industrial programmatic JV between the parties, has resulted in a series of acquisitions in Australia, expanding Burstone’s industrial and logistics fund management strategy. Burstone, through Irongate, has a minority co-investment in the programmatic JV and the Irongate JV provides the investment and asset management functions.

The Programmatic JV has now 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.
These assets include:

Zeleny Road, Minchinbury, New South Wales. The forward funding of a 10,190sqm state-of-the-art cold storage facility that has commenced development and is subject to a triple-net lease.
South Pine Road, Brendale Queensland. A 9.7-hectare site with a GLA of 31,738sqm with a 3.7 year WALE.

Interchange Industrial Estate, Narangba, Queensland. A 10-hectare site with a GLA of 34,382sqm with a 4.9 year WALE.

Williamson Road, Ingleburn, New South Wales. A 4-hectare site with GLA of 18,564sqm with a 2.9 year WALE.

The investments will target total returns at a JV level of approximately 15%, underpinned by moderate cash yield and potential capital value unlock through active asset management initiatives.

The JV agreement aligns with Burstone’s strategic objective as a fully integrated international real estate business to further expand its fund management strategies across all regions in which it operates. The Group is well positioned to deliver against this strategy in Australia, in conjunction with the Irongate team’s track record.

Andrew Wooler, CEO of Burstone Group said: “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.”

Irongate CEO, Graeme Katz, said: “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 can identify undervalued assets in strategic locations,” said Katz.

In March 2023, Burstone formed a 50%- interest JV with the Irongate Group’s management team. Since then, Burstone and Irongate have grown Third-Party Assets Under Management (AUM) in Australia by over 40%.