ESR Australia purchases $302.5 million logistics portfolio
ESR Australia announced Wednesday, 18 November 2020, that ESR Australia Logistics Partnership (EALP) has purchased a portfolio comprising 11 assets primarily located in the eastern seaboard cities of Sydney, Melbourne and Brisbane. The assets were purchased from Propertylink Australian Industrial Partnership II (PAIP II), an ESR-managed partnership.
EALP is an Australia-focussed, core-plus logistics partnership launched by ESR.
The purchase now takes the gross assets of EALP to over A$1 billion and is set to build a diversified core-plus portfolio weighted towards income-producing assets on the eastern seaboard.
With the new assets, EALP’s portfolio now includes 36 properties with gross floor area (GFA) of over 500,000 sqm.
“This transaction represents a great outcome for our investors in both investment vehicles and our business. The PAIP II investors achieving an exit in line with the fund’s original strategy, while EALP is able to add a quality portfolio of assets with a strong weighting to preferred markets of Sydney, Melbourne and Brisbane to its existing portfolio,” said Phil Pearce, ESR Australia, CEO.
“The fact that our investor in EALP was inclined to add PAIP II assets to the EALP portfolio reflects the value we’ve added through our active management strategy. I’m pleased to be retaining these assets and have the opportunity to continue to manage them,” he continued.
Pearce said that they’ve also made significant progress with EALP, their flagship logistics fund. He said in just over six months, they’ve closed
on target equity and grown assets to over $1 billion.
Further value and GFA has been added to the EALP portfolio with the addition of another income-producing asset via development.
ESR Australia has developed a facility for SUEZ Recovery and Recycling Pty Ltd at ESR Sherbrooke Industrial Estate in Queensland, one of the land parcels in EALP’s seed portfolio. The development reached Practical Completion this week and represents the first project to be delivered for EALP. The firm is also developing a circa 13,000 sqm speculative facility on the estate.
ESR Australia recently announced the selldown of the remaining 35% of its stake in EALP. This transaction has now concluded, supplying capital for the acquisition of these additional assets. ESR Australia held 17% of PAIP II, which will be reinvested as part of its 20% stake in EALP.
Source: ESR Australia