Hong Kong-listed logistics real estate platform ESR and Singapore’s sovereign wealth fund GIC have extended their core plus logistics strategy with the launch of EALP III with an equity commitment of A$600 million.
The launch of EALP III is a follow-on of the successful predecessor Partnerships of ESR Australian Logistics Partnership I (EALP I) and ESR Australian Logistics Partnership II (EALP II), which were core plus strategies between ESR Australia and GIC.
EALP I was launched in March 2020 with an equity commitment of A$600 million which was subsequently followed by EALP II in July 2021 with a further equity commitment of $600 million. Both vehicles have been successfully invested with a combined portfolio of 682,016 sqm across Australia.
Stuart Gibson and Jeffrey Shen, Co-founders and Co-CEOs of ESR Group commented: “We are pleased to expand our long-term partnership with GIC on EALP III as it reflects our collective confidence in ESR’s ability to capitalise on the growing set of opportunities across APAC and especially in Australia. As the largest real asset manager in APAC, ESR’s integrated fund management platform has provided our capital partners with access to some of the world’s best secular growth opportunities propelled by the positive trends of e-commerce and digital transformation. We look forward to leveraging our proprietary ecosystem of relationships to identify off-market transactions as well as leveraging our strong in-house development, asset and property management teams to create value for our investors and stakeholders.”
In August 2022, ESR Australia fully deployed the equity committed to EALP II, with the acquisition of two incoming producing portfolios with well-located assets across Melbourne, Brisbane, and Perth. At its close, EALP II held 17 assets with an expected end value of circa A$1.3 billion.”
ESR Australia CEO, Phil Pearce: “ESR Australia is well placed to continue the momentum demonstrated by EALP II and is already undertaking due diligence on a number of initial seed assets for EALP III. Through the depth of the team’s local knowledge and their ability to quickly access and convert opportunities, ESR Australia has established its credentials for delivering strong returns to its investment partners.
The continued positive outlook for Australian logistics assets and rental growth provide confidence that, through EALP III, we will continue to both grow ESR’s footprint across the country and deliver value to key partners,” Pearce concluded.
ESR Australia, part of the ESR Group, is a leading developer and manager of industrial, logistics and other property with assets under management of A$12.7 billion and 3.8 million sqm of GFA as of 30 June 2022.