ESR-REIT, on May 14, announced that it has completed the acquisition of the 10% stake in ESR Australia Logistics Partnership (EALP) by RBC Investor Services Trust Singapore for a purchase consideration of A$60.5 million ($62.4 million).
EALP, an indirect subsidiary of ESR Cayman, is a private fund managed by ESR Asset Management (Australia), which comprises 37 prime logistics properties located in Australia.
Currently, ESR Queensland Hold Trust holds a 20% interest in EALP, with the remaining 80% interest in EALP held by a wholly-owned subsidiary of GIC (Realty) Private Limited.
GIC (Realty)’s primary business is to hold real estate investments of Singapore’s sovereign wealth fund, GIC.
Following the completion of the acquisition, ESR Queensland Hold Trust and ESR-REIT will each hold a 10% interest in the fund, with GIC holding the remaining 80% interest in EALP.
SEE:Blackstone to sell US$3 billion Australian logistics to ESR
“As the group’s premiere pan-Asia REIT vehicle, ESR-REIT remains an integral part of our rapidly expanding new economy real estate platform. We remain committed to ESR-REIT and its long-term growth by providing it with continuous access to our strong portfolio of best-in-class logistics properties valued at approximately US$27 billion3 across the APAC region, as well as financial and operational support as it continues to scale up,” say ESR Co-founders and Co-CEOs, Jeffrey Shen and Stuart Gibson.
“While structural changes stemming from the pandemic are driving REITs to transform their portfolios in response to the acceleration of e-commerce and shifts in global supply chain management, we are confident that our continued commitment and support will ensure ESR-REIT is well-positioned to tap into the rising demand for quality logistics infrastructure and thrive on the transformation of the market,” they add.
Adrian Chui, CEO and executive director of the manager, says, “With the continued growth in demand for quality logistics facilities underscored by the sustained momentum in e-commerce, we are in a good position to be able to leverage our Sponsor’s strong network of quality pipeline opportunities and operational expertise to accelerate our expansion overseas. Complementing our investment strategy, EALP presented a unique opportunity to access a portfolio of high quality freehold assets to diversify our portfolio geographically and capitalise on the robust logistics market in Australia to strengthen our portfolio.”
Units in ESR-REIT closed flat at 40 cents on May 12.
