The transaction is a partnership with Australian real estate group Dexus. M&G Real Estate will become a 50% joint venture partner once the deal is complete.

This investment is M&G Real Estate's third acquisition in Australia this year. It follows 40 Mount Street in Sydney and 80 Ann Street in Brisbane.

The portfolio comprises an estate at Quarry west in Greystanes, Sydney as well as two Brisbane properties in prime industrial locations. The properties are fully occupied with a "strong tenant base with long-term commitments", said M&G Real Estate in a news release on Friday.

Richard van den Berg, manager of the M&G Real Estate's core Asia Property strategy, noted that demand for prime logistic assets closer to cities are increasing as retailers are increasing their omnichannel presence.

Chiang Ling Ng, the chief executive officer and chief information officer of M&G Real Estate (Asia), said: "We are delighted to work with Dexus, who has a proven track record and expertise in Australia's logistics sector. "We look forward to developing this strategic partnership and working with them to increase our exposure in Australia."

"Adapted from The Straits Times, 22 Dec 2018."