ESR Australia Logistics Partnership purchases $302M portfolio

ESR Australia Logistics Partnership (EALP) assets now exceed $1 billion after acquiring a portfolio of 11 Assets for $302.5 million from an ESR managed closed-end investment fund.

ESR Australia announced that EALP has purchased a portfolio comprising 11 assets primarily located in the eastern seaboard cities of Sydney, Melbourne and Brisbane.

The purchase of this portfolio of assets takes the gross assets of EALP to over A$1 billion.

With the addition of these assets, the EALP portfolio now includes 36 properties with GFA of over 500,000 sqm. EALP was seeded with 21 income-producing assets and 19.4 ha of land to develop core product.

“This transaction represents a great outcome for our investors in both investment vehicles and our business. The PAIP II investors achieving an exit in line with the fund’s original strategy, while EALP is able to add a quality portfolio of assets with a strong weighting to preferred markets of Sydney, Melbourne and Brisbane to its existing portfolio,” Phil Pearce, CEO of ESR Australia said.

He said that ESR have also made significant progress with EALP, its flagship logistics fund.

“In just over six months, we’ve closed on target equity and grown assets to over $1 billion,” he said.

Further value and GFA has been added to the EALP portfolio with the addition of another income-producing asset via development.

SR Australia has developed a facility for SUEZ Recovery and Recycling Pty Ltd at ESR Sherbrooke Industrial Estate in Queensland, one of the land parcels in EALP’s seed portfolio. The development reached Practical Completion this week and represents the first project to be delivered for EALP. ESR Australia is also developing a circa 13,000 sqm speculative facility on the estate.

ESR Australia recently announced the selldown of the remaining 35 per cent of its stake in EALP. This transaction has now concluded, supplying capital for the acquisition of these additional assets. ESR Australia held 17 per cent of PAIP II, which will be reinvested as part of its 20 per cent stake in EALP.

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