Industrial real estate platform ESR Australia is expanding its core plus logistics strategy in the country by committing A$600 million ($444 million) into the newly-launched ESR Australia Logistics Partnerships II (EALP II).
The firm said EALP II is an extension of the successful EALP I, whose initial A$600 million equity commitment is nearly fully utilised.
EALP’s portfolio currently comprises 33 income-producing properties, two land parcels for future development, and another two properties which are currently under development.
About A$480 million of the initial commitment to the second core-plus logistics strategy comes from investors, which, according to an IPE report, likely included Singapore sovereign wealth fund GIC.
“Following the successful deployment of the initial equity committed to EALP and the continued positive outlook for the logistics sector in Australia, we felt confident to commit an additional $600 million to the core plus strategy via the launch of EALP II,” said ESR Australia CEO Phil Pearce.
In May, Singapore-listed industrial properties investor ESR-REIT made its first overseas expansion through the acquisition of 10% stake in EALP for about $46.6 million. The deal gives ESR-REIT 10% interest in EALP. GIC holds 80% interest.
In addition to the launch of EALP II, ESR Australia also said real estate investment firm M&G has committed A$200 million to ESR Australia Development Partnership (EADP), a develop-to-hold logistics fund.
The commitment will give M&G a 20% stake in EADP, with ESR and GIC holding 40% each.
Launched in June 2020, with A$1 billion of equity commitments, EADP was seeded with two Western Sydney projects, Horsley Logistics Park and Leppington Industrial Estate.
The fund has since acquired Acacia Ridge Business Park in Queensland along with a 79-ha site in Cranbourne, Victoria.
ESR Australia is part of the ESR Group, the largest Asia-Pacific logistics real estate group with over $29.9 billion in assets under management.
ESR operates across the region in China, Japan, Singapore, South Korea, India, and Australia. It has been listed on the Main Board of The Stock Exchange of Hong Kong Limited since 1 November 2019.