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.