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Largest APAC logistics real estate platform announces $1b Australian partnership

A Hong Kong-listed logistics platform has launched a new $1 billion Australian-focused, core-plus logistics partnership.

ESR Australia Logistics Partnership (EALP) fund will be seeded by $715.6 million of prime logistics assets currently held on ESR’s balance sheet as well as an initial commitment of $450 million from an unnamed global institutional investor.

The seed portfolio is valued at $715.6 million and includes 20 income-producing assets and 19.4 hectares of land. This initial portfolio comprises assets attained as part of the Property Link acquisition, recently completed developments, and land acquired by ESR Australia over the past 18 months.

ESR is now one Asia’s largest third-party landlord for some of the world’s top e-commerce companies as well as for cold-chain logistics, accounting for 60 per cent of ESR’s current tenant make-up.

Phil Pearce, CEO of ESR Australia, said this is a significant milestone in the growth of ESR Australia as it substantially completes its strategy of recycling capital from the sell-down of our balance sheet to fund the growth of the business. 

“Securing such a prominent investor as a capital partner is a testament to the quality of our Australian platform,” he said.

“The launch of EALP allows us to capitalise on diminishing land supply and strong tenant demand, developing premium logistics and industrial facilities.”

Jeffrey Shen and Stuart Gibson, Co-founders and Group Co-CEOs of ESR said the EALP launch marks the success of building on its positive momentum in the launch of new investment vehicles across APAC. 

“A strong local team with deep market knowledge has been the foundation of how ESR has expanded successfully across the region,” they said.

“We have a long-term commitment to Australia and are confident that the team will strive to continue to deliver returns to our investors.”

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