Warburg-backed ESR launches $607m Australia-focused logistics partnership

Warburg Pincus-backed global logistics real estate firm ESR has launched ESR Australia Logistics Partnership (EALP), a new Australian-focused, core-plus logistics partnership that seeks to raise A$1 billion (about $607 million) of equity.

In a statement, ESR said EALP, the largest capital raising to date for ESR Australia, is seeded with A$715.6 million ($435 million) of prime assets currently held on the firm’s balance sheet. The portfolio includes 20 income-producing assets and 19.4 hectares of land.

A global institutional investor will be anchoring the fundraising with an initial commitment of A$450 million (about $274 million), ESR said.

“The launch of EALP represents a major milestone in the execution of the Australian strategy as it marks the completion of the recycling of balance sheet assets into ESR’s managed funds,” the firm said.

The partnership followed its recent capital raisings, including the generation of A$350 million for a new mandate, ESR Australian Logistics Trust (EALT), and ESR Office Partnership IV (EOP IV), which secured A$138 million.

“The launch of EALP allows us to capitalise on diminishing land supply and strong tenant demand, developing premium logistics and industrial facilities,” said ESR Australia CEO Phil Pearce.

The company 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.

After raising over US$1.8 billion in its initial public offering last year, the firm continues to attract capital to fund its expansion.

In January, the logistics real estate firm entered into a strategic partnership with the Singapore Government Investment Corporation (GIC) to establish a joint venture with a total equity commitment of $500 million in China.

Hong Kong-listed ESR, formed in January 2016 by a merger between Shanghai-based warehousing service e-Shang and Singaporean logistics real estate investment firm The Redwood Group, is also ramping up efforts to focus firepower on the region.

Apart from investing the lion share of the capital into its six key markets, the company plans to continue to evaluate new markets with a focus on Indonesia, Vietnam, and Thailand.

Singapore Reporter/s

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

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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.