This article is from the Australian Property Journal archive
SOVEREIGN wealth fund the Qatar Investment Authority is joining a consortium of major players to buyout ESR, in a deal which would give them the keys to some of Australia’s prized industrial and logistics assets.
Qatar joined the consortium led by Starwood, Sixth Street and SSW Partners to launch a takeover bid for ESR.
Qatar is already a shareholder in ESR, holding about 3.0% in the company and together with the consortium, they have a 39.9% stake in ESR.
In a statement, ESR said the company is considering the proposal and discussions with the consortium are ongoing.
But ESR maintains that the outcome of those discussions is uncertain.
“At this stage, there is also no certainty that the updated proposal will ultimately lead to an offer being made in relation to the shares in the company,” the group cautioned.
ESR is currently listed on the Hong Kong Stock Exchange and has a market capitalisation of HK$52.64 billion (as at October 09 2024).
The proposed takeover comes as institutional investors look to build scale in their industrial and logistics platforms, as the sector goes from strength to strength, since the pandemic.
Initially spurred by e-commerce due to the pandemic, the sector is now also driven by demand from supply chain diversification, artificial intelligence and the internet of things.
The latter has resulted in a surge from data centres operators keen to capitalise on the rise of generative AI.
Meanwhile ESR was recently the subject of merger and acquisition, as the buyer, when it bought out Logos’ from Australian co-founders John Marsh and Trent Iliffe.
The acquisition added US$23 billion of assets under management and 184 properties located in Australia, China China, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Singapore and Vietnam to ESR’s portfolio.
ESR has US$156 billion of AUM with a combined US$71 billion of New Economy AUM, a US$14 billion development workbook, which is the largest in APAC, growing Data Centre and Infrastructure platforms, and market leading positions in all major APAC markets.
If Starwood, Sixth Street, SSW Partners and Qatar consortium are successful, they will become the owner of some of Australia’s best industrial and logistics assets, including the Amazon robotics fulfilment centre, Australia’s largest logistics facility, a $500 million estate in Sydney’s Eastern Creek, and the $4.2 billion Moorebank Logistics Park.
ESR is the largest real estate manager in Asia, 7th largest globally and is a major owner in ASX-listed Cromwell Property Group.
