GIC, Singapore’s sovereign wealth fund, has increased its stake from 45% to 80% in ESR Australia Logistics Partnership (EALP). ESR Australia will continue to hold a 20% interest in the partnership.
The selldown of the remaining 35% of EALP is in line with the strategy outlined at the time EALP was established, said ESR in a statement.
EALP currently has gross assets of circa A$750 million which ESR Australia expects to exceed A$1 billion by the end of the year.
ESR Australia CEO, Phil Pearce said, “We’re experiencing strong demand from our capital partners for opportunities in industrial and logistics property. This asset class is a beneficiary of the change in consumer behaviour, such as the move to online shopping, as well as retailers seeking to hold higher levels of inventory, both due to the COVID-19 pandemic,” said ESR Australia CEO, Phil Pearce.
”GIC’s increased stake in EALP reaffirms its commitment to our strategy of investing in a portfolio of premium logistics properties. This is both a validation of the growth that ESR Australia has been able to deliver for its investors, as well as an endorsement of our team and the quality of our platform,” he added.