GIC has lifted its stake in the ESR Australia Logistics Partnership (EALP) to 80% with a fresh $480m investment in the vehicle.
EALP currently has gross assets of circa A$750 million which ESR Australia expects to grow to exceed A$1 billion by the end of the year. ESR Australia will continue to hold a 20% interest in the partnership and indicated that the sell down to GIC was in line with the strategy outlined at the time EALP was established.
ESR launched EALP in March to raise A$1 billion in equity, with the venture seeded with a 20-asset portfolio valued at A$715.6 million. (see June 2020 article)
Since inception, ESR Australia has rapidly emerged as a strong contender for securing strategic development sites. The achievement of this target sets ESR Australia on course to see out the final quarter of 2020 with continued momentum.
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.
Being part of the largest logistics real estate group in APAC means we can source capital through key relationships in the region to support domestic operations, allowing us to contribute to Australia’s domestic growth and provide substantial benefit for local communities.
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.” Completion of the selldown is conditional upon the satisfaction of anti-trust approvals.
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