ESR Australia announced that ESR Australia Logistics Partnership (EALP) has purchased an industrial portfolio comprising 11 assets primarily located in the eastern seaboard cities of Sydney, Melbourne and Brisbane from an ESR managed closed-end investment fund for A$302.5 million.
ESR Australia said with the addition of these assets, the EALP portfolio now includes 36 properties with GFA of over 500,000 sqm. ESR Australia Logistics Partnership was seeded with 21 income-producing assets and 19.4 ha of land to develop core product.
“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. 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,” said Phil Pearce, CEO of ESR Australia.
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”We’ve also made significant progress with EALP, our flagship logistics fund. In just over six months, we’ve closed on target equity and grown assets to over $1 billion,” he added.