ESR Cayman Limited, the largest Asia-Pacific focused logistics real estate platform, announces a new A$138 million mandate, ESR Office Partnership IV (“EOP IV”), boosting further its development in Australia.
The mandate will offer investors exposure to premium core-plus business park assets in Sydney and core-plus industrial assets in prime locations across the east coast of Australia.
The seed assets for EOP IV include two best-in-class business park properties located in Sydney, with a total value of A$138 million (equivalent to approximately US$94 million).
ESR has introduced a number of investors into the mandate, with ESR owning a stake of approximately 11%. Phil Pearce, CEO of ESR Australia, stated, “We are pleased with the launch of EOP IV which is our positive response to the robust demand of investors for more exposure to business park assets while releasing capital for us to pursue further development opportunities.” The transfer of wholly-owned assets to the mandate is an integral part of ESR’s asset recycling strategy to efficiently deploy capital for growth acceleration and solid returns.
“We see the business parks as complementary to our core strategy of logistics and industrial property, and we have some good commercial assets, such as those seeding EOP IV, in our portfolio,” continued Mr. Pearce.
The two assets transferring into EOP IV include:
- 15 Talavera Road, Macquarie Park with a net lettable area of 12,630 sq. m and a WALE of 2.6 years.
- 18-20 Orion Road, Lane Cove with a net lettable area of 9,751 sq. m and a WALE of 3.1 years.