Real Estate has acquired Australia’s sovereign wealth fund’s 50% stake in the Industrial Partnership for an undisclosed sum.

Dexus and the Future Fund formed the partnership in 2014 to own a portfolio of industrial properties. The portfolio comprises an estate at Quarrywest in Greystanes in Sydney’s west and two Brisbane properties.

A source told Âé¶¹Ó³»­ Real Assets that Dexus had a value of AUD167m (€103.7m), as of 30 June 2018, on its book for its half share of the portfolio.

The source added: “M&G’s investment is priced at a premium to the 30 June built up book value and is in line with the December 2018 valuations.�

The latest deal is M&G Real Estate’s third acquisition in Australia this year following 40 Mount Street in Sydney and 80 Ann Street in Brisbane.

Including this transaction, the £31.70bn (€35.15bn) property manager said its total exposure to Australian real estate has risen to AUD2.37bn.

Richard van den Berg, manager of the M&G Real Estate’s core Asia Property strategy, said: “Demand for prime logistic assets closer to cities is increasing as retailers are increasing their omni channel presence. These properties are well positioned to add significant value to our strategies.�

Ng Chiang Ling, CEO and CIO of M&G Real Estate, Asia, added that M&G looks forward to developing is strategic partnership with Dexus and working with them to increase its exposure in Australia.

Dexus’ executive general manager, funds management, Deborah Coakley said: “We are delighted to welcome M&G Real Estate onto our funds management platform and look forward to facilitating their industrial property growth mandate.�