ESR Australia acquires 21-hectare development site in Horsley Park
ESR Australia has bought an industrial site in Western Sydney for A$142.5m (€88m), lengthening its development pipeline in Australia to A$1.8bn.
The 20.8-hectare development site in Horsley Park will offer 110,000sqm of gross floor area with five to six warehouses in what will become ESR Horsley Logistics Park.
Since its entry to Australia last year, ESR has acquired five key industrial logistics sites. The largest of these is of 21.5 hectares at Kemp’s Creek, also in Western Sydney.
The Australian arm of ESR, which listed in Hong Kong this month after raising more than US$1.2bn (€1.1bn), will initially fund the acquisition from its own balance sheet.
Philip Pearce, ESR Australia CEO, told IPE Real Assets that some of ESR’s acquisitions in Australia had been made on delayed settlements because the sites were still occupied.
As a developer and fund manager, ESR would eventually use the assets to seed a fund or funds, he said.
ESR has previously said it would seek to raise third-party capital to fund its operations in all jurisdictions, including Australia.
ESR Australia is expected to establish a fund or funds in the next 12 months to raise third-party capital.
Pearce said ESR’s development pipeline would provide a springboard for the Australian operation to become a significant contributor to the group, which has US$20bn under management.