ESR, GIC launch third core-plus logistics partnership with A$600m commitment

REAL estate asset manager ESR Group on Friday (Sep 9) announced the launch of ESR Australia Logistics Partnership (EALP) III, the third iteration of its core-plus logistics strategy between the group's Australian subsidiary, ESR Australia, and Singapore sovereign wealth fund GIC.

Like its predecessors EALP I and II, EALP III comes with an equity commitment of A$600 million (S$572.2 million).

EALP I was launched in March 2020 followed by EALP II in July 2021. ESR said both vehicles have been successfully invested and have a combined portfolio spanning 682,016 square metres across Australia.

According to the group's co-founders and co-chief executive officers Stuart Gibson and Jeffrey Shen, ESR Australia fully deployed the equity committed to EALP II in August this year with the acquisition of 2 income-producing portfolios with assets across Melbourne, Brisbane and Perth. It held 17 assets with an expected end-value of about A$1.3 billion at its close. 

Both Gibson and Shen view EALP III as an expansion of ESR's long-term partnership with GIC, as well as a reflection of their "collective confidence in ESR's ability to capitalise on the growing set of opportunities across Apac (Asia-Pacific) and especially in Australia".

"ESR Australia is well-placed to continue the momentum demonstrated by EALP II and is already undertaking due diligence on a number of initial seed assets for EALP III," added Phil Pearce, chief executive of ESR Australia. 

KEYWORDS IN THIS ARTICLE

READ MORE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes