PSP backs AGIV's expansion into eastern seaboard and infill sites with major capital injection
The Public Sector Pension Investment Board (PSP Investments) has committed up to A$800m to the Aliro Group Industrial Vehicle (AGIV), joining clients of CBRE Investment Management’s Indirect Private Real Estate Strategy (CBRE IM Indirect) as a cornerstone investor.
The capital will support AGIV’s plans to acquire, manage and develop institutional-grade assets in eastern seaboard locations and supply-constrained infill areas.
PSP Investments will also acquire an initial interest in AGIV and provide additional growth capital, as stated in the press release.
AGIV was established in 2018 as an open-ended industrial vehicle by Aliro Group.
Its portfolio includes 12 properties in Caringbah (NSW), Dandenong South (VIC), Tottenham (VIC), and Geebung (QLD), and is expected to reach A$2.2bn upon completion.
The vehicle recently increased its A$1.3bn Sustainability Linked Loan to A$700m and has been named a 2024 Global Real Estate Sustainability Benchmark (GRESB) Sector and Regional Leader, as reported by Business News Australia.
“This investment gives us immediate scale and access to a high-quality portfolio and development pipeline,” said Stephane Jalbert, managing director and head of Europe and Asia-Pacific at PSP Investments.
He added that the transaction aligns with PSP Investments’ real estate sector strategy and complements its existing Australian holdings.
David Southon, co-founder and executive chair of Aliro Group, said PSP Investments’ participation represents a shift in the vehicle’s capital structure.
He noted that the firm joins existing investors who are clients of CBRE IM’s Indirect business.
He added that PSP Investments has a long-term investment mindset and that the partnership expands AGIV’s capacity.
Aliro Group’s co-founder, managing director and CEO Daniel Wise said the continued growth of the firm’s flagship vehicle reflects demand for industrial-focused strategies in Australia.
He added that AGIV will continue to pursue new investment opportunities in line with the company’s development plans and investment criteria.
Alex Crossing, head of APAC for CBRE IM’s Indirect business, said the firm has worked with Aliro since 2018, providing clients with access to a portfolio focused on submarkets in eastern Australia.
He noted that industrial and logistics real estate has remained a consistent investment focus in the Asia Pacific region.
CBRE Capital Advisors and Macquarie Capital acted as financial advisers to Aliro Group.
In a joint statement, Stuart McCann of CBRE Capital Advisors – Pacific & SEA and Alex Rouse of Macquarie Capital said the transaction reflects continued investor interest in Australian industrial real estate.
They cited stabilised capitalisation rates, low vacancy, demand drivers and limited supply—particularly in infill locations—as ongoing market factors.
PSP Investments manages $299.7bn in net assets as of 31 March and maintains holdings across multiple asset classes in Australia.
