Frasers Property (TQ5.SI) saw its stock price soar by 3.85% in the intraday trading session on Wednesday, following the announcement of a significant joint venture in the Australian industrial property market. The company's industrial arm, Frasers Property Industrial, has established its first capital partnership in Australia with an investment vehicle sponsored by Morgan Stanley Real Estate Investing (MSREI).

The newly formed Frasers Prime Logistics Venture is a 50-50 joint venture that encompasses a portfolio of eight major industrial assets located in key logistics hubs across Sydney and Brisbane. Valued at approximately A$600 million, the portfolio boasts a total Gross Floor Area of 188,000 sqm and is fully leased to 11 tenants, including notable names such as Primary Connect, National Tiles, and Williams Sonoma. The assets have an average age of just five years and a weighted average lease expiry (WALE) of 7.7 years, indicating strong and stable income potential.

Reini Otter, Chief Executive Officer of Frasers Property Industrial, emphasized the strategic importance of this partnership, stating, "Aligning with like-minded capital partners is crucial to our strategic goals at Frasers Property. This collaboration with MSREI allows us to leverage synergies effectively across our extensive industrial portfolio." The market's positive reaction suggests that investors view this joint venture as a promising step towards growth and increased profitability for Frasers Property in the highly sought-after industrial real estate sector.