ESR Australia expands portfolio with $220m asset acquisition

ESR Photo

ESR Australia Logistics Partnership (EALP), the new Australia-focused, core-plus logistics partnership launched by global logistics real estate firm ESR, has paid A$302.5 million ($220 million) to acquire a portfolio of 11 assets in Sydney, Melbourne, and Brisbane.

In a statement, the Warburg Pincus-backed logistics real estate firm said EALP acquired the portfolio of assets from Propertylink Australian Industrial Partnership (PAIP) II, an ESR-managed partnership.

The acquisition raises EALP’s AUM to more than A$1 billion ($728 million) and diversifies its portfolio with core-plus assets primarily located on the eastern seaboard of Australia. EALP’s portfolio now includes 36 properties with gross floor area of over 500,000 square meters.

“This transaction represents a great outcome for our investors in both investment vehicles and our business. The PAIP II investors achieving an exit in line with the fund’s original strategy, while EALP is able to add a quality portfolio of assets with a strong weighting to preferred markets of Sydney, Melbourne, and Brisbane to its existing portfolio,” said ESR Australia CEO Phil Pearce.

ESR launched EALP, a core-plus logistics partnership that seeks to raise A$1 billion (about $607 million) of equity, in March. The largest capital raising to date for ESR Australia, EALP is seeded with A$715.6 million ($435 million) of prime assets currently held on the firm’s balance sheet.

In September, ESR agreed to sell a further 35 per cent interest in EALP to a subsidiary of Singapore sovereign wealth fund GIC. ESR currently holds 20 per cent stake in EALP while Empire Trust 2, which is managed by GIC subsidiary Ausco Sargon 2, holds 80 per cent.

ESR has made substantial inroads into the Australian market in the last 12 months, the firm said. Apart from attracting significant capital via equity raisings, ESR Australia has also executed sales of non-core assets and recycled capital into strategic land banks to bolster its considerable development pipeline.

Listed in Hong Kong, ESR was formed in January 2016 by a merger between Shanghai-based warehousing service e-Shang and Singaporean logistics real estate investment firm The Redwood Group.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.