Hale Raises A$750M for Australian Logistics Growth

Hale, a prominent Australian logistics real estate manager and developer with a substantial A$3.3 billion in assets under management, has successfully closed its second flagship fund series, amassing approximately A$750 million in new equity commitments. This significant capital injection, channeled through its vehicles HCLF2 and HCILF2, signals robust investor confidence in the firm's strategy and the enduring appeal of the Australian logistics sector.

The fundraising round saw strong participation from globally recognized institutional investors. Notably, Oxford Properties and Warburg Pincus, who were cornerstone investors in Hale's initial fund vintages, have re-committed their support. This renewed backing is complemented by the addition of a new, leading global investor with a proven track record in logistics, further diversifying Hale's capital base and underscoring its growing appeal to sophisticated international capital.

This substantial capital raise positions Hale to immediately capitalize on prevailing market dynamics. The funds will be strategically deployed across two core investment strategies: an opportunistic fund targeting the development of modern, last-mile logistics facilities in supply-constrained urban centers, and a core-plus/value-add vehicle focused on acquiring and repositioning high-quality, income-generating assets. This dual approach allows Hale to navigate market dislocations effectively and pursue opportunities across the risk spectrum.

The Australian logistics market continues to benefit from powerful secular tailwinds, including ongoing urbanization, sustained population growth, significant infrastructure investment, and the persistent expansion of e-commerce. These factors have led to historically low vacancy rates in infill industrial markets across the East Coast. Coupled with a scarcity of developable land in prime inner-ring locations, this environment creates a fertile ground for rental growth and redevelopment initiatives, aligning perfectly with Hale's strategic focus.

Robert McMickan, Joint Managing Director and Co-founder of Hale, emphasized the transformative nature of this milestone. "Securing these commitments from high-calibre institutional partners marks a transformative milestone for Hale, reflecting deep institutional conviction in our strategy and platform," McMickan stated. He further highlighted the significance of the re-commitments from Warburg Pincus and Oxford Properties as a strong endorsement of the firm's execution capabilities and historical performance.

Alec Harper, Head of Australia at Oxford Properties, reiterated the firm's conviction in the Australian infill logistics sector and Hale's management team. "Oxford's re-commitment is testament to our deep conviction in the Australian infill logistics sector, and Hale’s world-class management team and platform," Harper commented, noting the successful execution and portfolio growth achieved since their initial investment.

Echoing this sentiment, Andrew Fitzpatrick, Managing Director at Warburg Pincus, affirmed their confidence in Hale's ability to deliver value. "Hale has quickly established itself as a leading infill logistics platform in Australia," Fitzpatrick remarked. "Our re-commitment reflects our conviction in the long-term growth opportunities in the supply constrained segments of the Australian logistics market and our confidence in Hale’s vertically integrated platform and its ability to consistently deliver across single- and multi-level logistics, cold storage, and industrial outdoor storage." This substantial capital raise will empower Hale to scale its operations strategically during a dynamic period in the real estate cycle.