Singapore-listed industrial properties investor ESR-REIT has made its first overseas expansion through the acquisition of a 10% stake in ESR Australia Logistics Partnership (EALP) for about $46.6 million, according to an announcement Friday.
The acquisition, carried out by ESR-REIT trustee RBC Investor Services Trust Singapore, gives ESR-REIT access to 37 prime logistics properties owned by EALP in Australia. It marks ESR-REIT’s first acquisition from the pipeline of ESR Cayman Limited.
Following the completion of the deal, ESR-REIT and ESR Queensland Hold Trust will each own a 10% interest in EALP, with GIC holding the remaining 80% interest.
EALP, an indirect subsidiary of ESR Cayman, is a private fund managed by ESR Asset Management (Australia). Its portfolio currently comprises 33 income-producing properties, two land parcels for future development, and another two properties which are currently under development.
Collectively, the 37 prime logistics assets are located in core industrial markets of New South Wales, Victoria, Queensland, South Australia, and Western Australia, with a total land area of approximately 1,319,468 sqm, an occupancy rate of 95.9%.
“Complementing our investment strategy, EALP presented a unique opportunity to access a portfolio of high-quality freehold assets to diversify our portfolio geographically and capitalise on the robust logistics market in Australia to strengthen our portfolio,” said Adrian Chui, CEO and executive director of the manager of ESR-REIT.
ESR-REIT invests in quality income-producing industrial properties and, as of 31 December 2020, holds interest in a diversified portfolio of 57 properties located across Singapore, with a total gross floor area of approximately 15.1 million square feet and an aggregate property value of S$3.1 billion.
In addition to the Australia acquisition, ESR-REIT also proposes to acquire 46A Tanjong Penjuru, a modern in-demand ramp-up logistics facility located in the western central area of Singapore.
“The proposed acquisition coupled with the Australia Acquisition will scale up ESR-REIT’s logistics exposure in the face of significant demand in quality warehouse space,” according to the announcement.