ESR Australia has raised A$680m (€423.5m) in fresh capital, including a A$200m commitment from M&G Real Estate Asia, for its funds.
A large Asian investor, believed to be GIC, contributed A$480m.
M&G Real Estate, which is already invested with ESR in its US$870m ESR Ichikawa Distribution Centre in Tokyo, has acquired a 20% stake in the ESR Australia Development Partnership (EADP).
ESR Australia CEO, Phil Pearce, told IPE Real Assets that ESR Australia had sold down 20% of its 60% holding in EADP to M&G. The other shareholder, GIC, continues to own a 40% stake.
Pearce confirmed that ESR Australia was in discussion with other interested investors to sell down a further 20% stake. “It has always been our intention to reduce our initial stake of 60% over time,” he said.
Although he said he was “not in a hurry” to sell, the strength of the market suggests that a transaction could be concluded before the end of the year.
EADP currently has A$270m in assets under management. It also has a pipeline of developable land of 81,000sqm, with an anticipated end-value of A$1.1bn.
Launched in June 2020 with A$1bn in equity commitments, EADP is a develop-to-hold logistics strategy with cornerstone investor GIC committing 40% of the equity.
ESR Australia has also launched a follow-up fund to its ESR Australia Logistics Partnership (EALP 1), with an injection of fresh capital for an Asian institutional investor.
Pearce declined to name the investor, but said the investor and ESR were committing to 80% of the A$600m equity for the second EALP.
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