APAC focused logistics real estate platform ESR Cayman Limited, listed on Hong Kong Stock Exchange, has launched ESR Australia Logistics Partnership (EALP), a new Australian-focused, core-plus logistics partnership.
EALP will be seeded with A$715.6 million (equivalent to approximately US$431.1 million) of prime logistics assets currently held on ESR’s balance sheet. “EALP is seeking to raise A$1 billion (equivalent to approximately US$602.4 million) of equity and will be anchored by a global institutional investor which is providing an initial commitment of A$450 million (equivalent to approximately US$271.1 million),” said in a statement.
The company said the seed portfolio includes 20 income-producing assets which are strategically located industrial and logistics assets with a majority weighting to the eastern seaboard, where 76% of Australia’s population resides.
“This is a significant milestone in the growth of ESR Australia as it substantially completes our strategy of recycling capital from the sell-down of our balance sheet to fund the growth of our business. Securing such a prominent investor as a capital partner is a testament to the quality of our Australian platform. The launch of EALP allows us to capitalise on diminishing land supply and strong tenant demand, developing premium logistics and industrial facilities,” said Phil Pearce, CEO of ESR Australia.
In January ESR has entered into a strategic partnership with the Singapore Government Investment Corporation (GIC) to establish a joint venture with a total equity commitment of US$500 million in China.