Nuveen provides A$205 million senior loan supporting multi-storey logistics facility

Global asset manager Nuveen has provided an A$205 million senior loan to Hale, Warburg Pincus and Oxford Properties Group to support the development of a multi-storey logistics facility at Rosehill, Sydney.

“Rosehill has one of the lowest industrial vacancy rates globally¹ and is located on a strategic ‘last mile’ infill site immediately adjacent to the M4 motorway, 3km from Parramatta and 18km from Sydney CBD.

On completion, the building will have a total net lettable area (NLA) of 49,173 sqm. Construction has commenced with completion expected mid-2026.

David Chan, Senior Director for Australia and New Zealand Debt at Nuveen, who was responsible for originating and closing the debt deal, said: “The Sydney logistics market remains very tight and this is even more pronounced within inner-city infill locations due to strong tenant demand and low competing supply.

“The building, once complete, will be a premium multi-storey logistic estate in a land-constrained logistics market with limited competing product.

“Hale is a market-leading logistics developer and has a stellar track record of returns and delivery. We are excited to be growing our lending relationship with Hale across their business.”

Dugald Marr, Head of Debt – Australia at Nuveen Real Estate said: “Nuveen made its first commercial real estate debt investment over 90 years ago and has since built a real estate debt platform with over US$44 billion AUM.

“Our teams understand the need to provide borrowers with competitive funding solutions and have the ability to move quickly to provide execution certainty.”

The loan is aligned to Nuveen’s Real Estate Debt strategy, which makes core loans and core plus loan investments to institutional borrowers with security over prime assets in preferred sectors. By carefully managing debt sizing and loan covenants, the strategy seeks to provide principal protection for investors whilst pursuing attractive loan investment returns.

Speaking about the deal, Hale said: “Founded in 2021, Hale has rapidly established itself as a leading player in the Australian industrial and logistics sector. With A$1.1 billion of AUM and a fully built-out value of A$2.7 billion, Hale is one the largest vertically integrated owners and developers of infill multi-level warehousing in Australia.

“We value Nuveen’s commerciality and structuring expertise, which has delivered an efficient debt structure for our investors. We look forward to exploring further opportunities with Nuveen, as we continue to grow our business investments across core plus, value added and development strategies.”

Hale Capital Partners

Co-founded by Hale’s Management, Warburg Pincus and Oxford Properties in 2021, Hale is an Australian infill logistics fund manager and developer, with capabilities spanning single and multi-level warehousing, cold storage and industrial outdoor storage.

Hale’s investment thesis seeks return outperformance by targeting supply-constrained markets in key locations, taking advantage of population growth-driven increases in consumption and the shift to e-commerce over time.