This article is from the Australian Property Journal archive
ASIA Pacific logistics developer and manager ESR Cayman has launched a $1 billion fund targeting Sydney, Melbourne and Brisbane, positioning itself to take advantage of the e-commerce boom off the back of the COVID-19 pandemic.
The ESR Australia Development Partnership has received commitment of $400 million from the Singaporean sovereign wealth fund GIC as the cornerstone investor.
EADP will be seeded with two prime land parcels in Sydney, purchased for $190 million, which will be developed into premium logistics assets with an end value of approximately $410 million.
The ESR Horsley Logistics Park is a 20.8 ha site purchased from CSR in late 2019 and destined to become a premium distribution park with a total GFA of circa 110,000 sqm. The 8.7 ha ESR Leppington Industrial Estate which is well positioned in South West Sydney and set to benefit from the new Western Sydney Airport and infrastructure upgrades will provide GFA of circa 40,000 sqm of prime warehouse space.
ESR Australia CEO Phil Pearce said COVID-19 has not slowed the appetite for high quality logistics assets in Australia.
“Market analysts predict that e-commerce is set to boom in Australia off the back of the pandemic with a sharp increase in consumers opting for online shopping. With ESR’s focus on the logistics property sector, it is likely the business will reap the benefits of this growing demand,” Pearce said.
The launch of EADP along with the recently established ESR Australia Logistics Partnership. These two partnerships will provide ESR Australia with capacity to acquire and develop over $3.5 billion of logistics assets.
