ESR launches A$1 billion ESR Australia Development Partnership II (EADP II), partnering with GIC
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Oct 6, 2022
ESR launches A$1 billion ESR Australia Development Partnership II (EADP II), partnering with GIC
Singapores GIC has committed A$490 million as the cornerstone investor. ESR Australia CEO, Phil Pearce, said, "Following the successful deployment of EADP capital, EADP II will look to extend the develop-to-core strategy providing investors the opportunity to take advantage of ESR Australia's proven development capabilities,”
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ESRESR Australia CEO, Phil Pearce
ESR Group Limited, (“ESR” or the “Company”, together with its subsidiaries as the “Group”; SEHK Stock Code: 1821), APAC’s largest real asset manager powered by the New Economy, has raised A$540 million for a substantial anchor close of its new venture, EADP II, a develop-to-core logistics fund that will further expand ESR Australia's strategy of delivering premium, sustainable and human-centric designed industrial estates. With a targeted fund size of A$1 billion for EADP II, GIC has committed A$490 million as the cornerstone investor.
EADP II is the successor to the fully allocated ESR Australia Development Partnership (EADP), established in June 2020 with A$1 billion of equity commitments from partners including GIC, ESR's Pan Asia Fund, and Sovereign Wealth and Life Insurance funds.
All of EADP's equity has been allocated across eight projects in Sydney, Brisbane and Melbourne, with an expected end value of A$2.6 billion. Significant projects include ESR Horsley Logistics Park in Sydney, Acacia Ridge Business Park in Brisbane and ESR Green Link Estate in Melbourne.
Stuart Gibson and Jeffrey Shen, ESR Co-founders and Co-CEOs, said, "The launch of EADP II builds on our excellent fund management track record in Australia, demonstrating our ability to offer capital partners strong investment options with high-quality returns. It is also a testament to our competitive edge as APAC's largest real asset manager with an integrated fund management platform that enables investors to access attractive secular growth opportunities propelled by e-commerce and digital transformation. Through our extensive local expertise and presence, we are confident we will continue to accelerate our growth momentum in Australia."
ESR Australia CEO, Phil Pearce, said, "Following the successful deployment of EADP capital, EADP II will look to extend the develop-to-core strategy providing investors the opportunity to take advantage of ESR Australia's proven development capabilities and access a modern portfolio of high-quality strategically located logistics assets with strong ESG Credentials as their foundation."
"Despite the current interest rate environment, logistics property remains an attractive investment proposition due to the strong demand and shortage of available stock, which has seen strong rental growth. In addition, investors are increasingly incorporating ESG targets in their investment considerations.
EADP II will leverage its ESG-centric approach through energy consumption reduction, human-centric design application and a dedicated solar strategy as integral to building for a sustainable future".
“In March 2022, we committed to this as the new direction of our future estates with ESR Green Link Estate in Cranbourne, Victoria, acquired under EADP, which is receiving strong enquiry,” Mr Pearce concluded.
ESR Australia has cemented its place in the local industrial market with its strong development pipeline, currently valued at A$6.6 billion, encompassing 28 projects and 380,633 square metres (sqm) in active development.
ESR Australia, part of the ESR Group, is a leading developer and manager of industrial, logistics and other property with assets under management of A$12.7 billion and 3.8 million sqm of GFA as of 30 June 2022.
Related ESR Reading:
Toys ‘R’ Us New 10-year lease at ESR’s Clayton Business Hub by Colliers | The Industrialist
South East Cranbourne emerging as an industrial powerhouse says Colliers | The Industrialist
Below Image: ESR Horsley Logistics Park in Sydney.
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