Thai tycoon Charoen Sirivadhanabhakdi is doubling his bets on his global real estate game with a huge new bet in Australia's explosive logistics market. Via Frasers Property Industrial, a unit of his far-flung business conglomerate, Charoen has formed a 50-50 joint venture with Morgan Stanley Real Estate Investing (MSREI).

The new Frasers Prime Logistics Venture company will own and control eight industrial buildings with a total gross floor area of 188,000 square meters, which are valued at around A$600 million ($380 million). This Charoen Australia deal is a testament to rising foreign interest in Australian supply chain-associated infrastructure.

Strategic Location with Long-Term Tenants

Situated in Sydney's and Brisbane's key logistics nodes, the properties are leased in the long term to 11 tenants on average for over seven years. Key tenants are Primary Connect, the logistics division of Woolworths, and Williams Sonoma, the U.S. home furnishings retailer. The secure, cash-paying assets set the venture up for long-term returns.

Frasers Property Industrial Extends Its Global Reach

Reini Otter, CEO of Frasers Property Industrial, emphasized the strategic importance of the deal:

"This collaboration with MSREI allows us to most effectively realize synergies out of our extensive industrial platform and further extend our footprint in Australia's rapidly growing logistics market."

Frasers Property Industrial, owned by Singapore-listed company Frasers Property, manages some S$12 billion ($9 billion) worth of industrial and logistics properties globally, with a strong presence in Europe and Australia.

Charoen's Growing Investment Empire

Charoen Sirivadhanabhakdi—net worth of $11.1 billion, as estimated by Forbes—is most famous for his stakes in Thai Beverage (maker of Chang Beer), Asset World Corporation, and Big C Supercenter. His property investments, such as Frasers Property, have spread widely throughout the Asia-Pacific.

His latest Charoen Australia deal is his latest addition to his growing portfolio of overseas investments, and he is now a key player in the overseas industrial property market outside Southeast Asia.

Why the Charoen Australia Deal Matters

The Charoen Australia deal is well-timed, with demand for logistics real estate robust, fueled by the growth of e-commerce and supply chain upgrading. With premium locations, long tenancies, and quality tenants, the venture offers a stable, future-proofed investment platform.

With global investors looking towards recession-proof industries, this action by Charoen not only speaks volumes for his business acumen but also reflects the attractiveness of Australia as a logistics hub for the Asia-Pacific region.