Arrow Capital Partners has acquired an industrial estate asset in the outskirts of Sydney from ESR Australia for almost A$102m (€63.5m).

The asset, comprising four buildings with 24 units, is located in Mount Kuring-Gai in Sydney’s north. It was part of the Propertylink portfolio which ESR inherited when it took over the then listed company in late 2018. Propertylink paid A$44.25m for the industrial complex.

It formed the seed portfolio of ESR Australia Logistics Partnership (EALP), ESR’s first partnership with GIC in Australia. The complex had been expanded with the addition of an office and warehouse.

Philip Pearce, deputy CEOof ESR Group, told IPE Real Assets: “We decided to sell as we had captured a lot of rental upsides from repositioning the asset. We had significantly improved the tenancy profile of the property.”

Pearce, who is also CEO of ESR Australia, said it was a good time to “lock in a tidy profit” and deliver “some performance in EALP” for our investor. 

Arrow Capital, which specialises in real estate investment with A$5bn of assets under management located in Australia and Europe, said the property would form part of its Australian strategic industrial real estate portfolio.

To read the latest IPE Real Assets magazine click here.