ESR Australia is set to continue its expansion into the Australian logistics market after Singapore-based wealth fund, GIC, increased its stake in the ESR Australia Logistics Partnership.

The selldown of 35 per cent means GIC now has an 80 per cent share in EALP, with ESR Australia retaining a 20 per cent stake.

The increased equity offering brings ESR Australia’s assets within the EALP and the ESR Australia Development Partnership (EADP) to $1 billion. 

At a glance: 

• Investment in the ESR Australia Logistics Partnership (EALP) is set to increase following its launch in March. 
• Cornerstone investor GIC will increase its stake in EALP from 45 per cent to 80 per cent.
• According to ESR Australia, the selldown demonstrates its ability to attract capital through strong partner relationships.

ESR Australia CEO Phil Pearce said the achievement of the target sets ESR Australia on course to see out the final quarter of 2020 with continued momentum. 

“We’re experiencing strong demand from our capital partners for opportunities in industrial and logistics property," he said.

ESR Australia recently leased out Unit 2, 163 Viking Drive, Wacol. Source: JLL

"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."

He added  GIC’s increased stake in EALP reaffirmed its commitment to ESR Australia's 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," he said.

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