Asia-Pacific logistics group ESR has established a new development partnership with Mitsubishi Estate Asia (MEA) to deliver a prime logistics estate in Western Sydney, valued at A$700m (€431m).
Known as the ESR Huntingwood Development Partnership, the joint venture will develop a premium, multi-stage logistics estate on an 18.3-hectare site in the suburb of Huntington, scheduled for completion next year.
The partnership reflected sustained customer demand for premium logistics space, supported by ESR’s development pipeline of more than A$10.2bn across Australia and New Zealand, according to ESR.
Yosuke Matsunaga, head of Australia at Mitsubishi Estate Asia, said the partnership aligned with MEA’s strategy of deepening its exposure to the country’s logistics sector. “We are confident that this partnership will further strengthen the relationship between ESR and MEA,” he said.
“Huntingwood offers everything we look for [in terms of] scale, location and a development partner with a proven track record. We look forward to delivering something exceptional here.”
Phil Pearce, president of ESR, said the Huntingwood logistics estate was strategically positioned within Western Sydney, offering connectivity to key freight corridors and proximity to the future Western Sydney International Airport.
“Huntingwood is a premium logistics site in one of Sydney’s most sought-after industrial precincts, and we’re excited to deliver a best-in-class estate alongside a partner who shares our vision for world-class developments in Australia’s key growth markets,” Pearce said.
“This is our second partnership with Mitsubishi Estate Asia in the past two years, and the Huntingwood investment is clear testament of the strength and momentum of this relationship.”
In 2024, ESR and MEA established the ESR Pakenham Partnership.
The joint venture advanced ESR’s capital raising strategy, supporting the accelerated expansion of its development pipeline across core growth markets. The partnership demonstrated continued investor confidence in ESR’s Australian platform and development capability, Pearce added.
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