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.