Warburg Pincus-backed logistics real estate developer ESR has purchased an industrial site in Australia for A$142.5 million ($98.2 million) in a continued push in the country’s industrial and logistics real estate space.
The 20.8-hectare development at Horsley Park will offer about 110,000 square metres of gross floor area across 4-6 warehouses in what will become the ESR Horsley Logistics Park.
The site is within the Western Sydney industrial market. It is also close to major transport links including the M4 and M7 motorways and in close proximity to the future Western Sydney Airport, ESR said in its announcement.
Since entering the Australia market, ESR has completed the integration of Propertylink Group and Commercial & Industrial Property Pty Ltd.
In June, Frasers Property Australia and ESR Australia jointly acquired a 4.67-hectare business park development site in Melbourne suburb Mulgrave area, valued at A$400 million ($276.28 million).
With these acquisitions in the country, the firm has added approximately 70 hectares and close to 330,000 sqm of logistics space, bringing ESR’s total development pipeline in Australia to A$1.8 billion.
“We will continue to add to our land bank to ensure ESR is well-positioned to keep capitalising on the opportunity that the Australian market offers with an established presence, substantial team of experts on the ground, and proven capabilities in Australia,” said Phil Pearce, CEO of ESR Australia.
ESR Australia, which manages assets worth $1.3 billion, is a part of Asia-Pacific logistics real estate platform ESR Cayman that has over $20 billion in assets under management across the region.
ESR Cayman Ltd raised $1.6 billion in a re-launched IPO in October. Its shares began trading on the Hong Kong Stock Exchange on 1 November 2019.