Mitsubishi Estate Asia (MEA) is developing its first significant industrial project in Australia, partnering with ESR Australia in a A$175m venture.
The partnership will acquire a 12.1ha site in Pakenham in Melbourne’s south east to develop the 70,000sqm Enterprise Industry Park. The first stage of the development, a 12,600sqm pre-leased building, is being constructed and will be finished by early 2025. Development on the second stage is expected to start in the second half of this year.
ESR bought the Melbourne site in 2021. It sub-divided the site and sold 13 hectares to an owner-occupier. The remainder was held on ESR Australia’s balance sheet until now.
Phil Pearce, ESR group deputy CEO and ESR Australia CEO, said: “The partnership aligns with the broader ESR Group’s continued focus on lightening its balance sheet and diversifying capital sources.
“This partnership reflects ESR Australia’s development capabilities and together with Mitsubishi Estate Asia will focus on delivering a modern portfolio of high-quality and strategically located industrial estates,” he said.
Yuzo Nishiyama, executive director – head of Australia at Mitsubishi Estate Asia, said: “This transaction is an important milestone in our strategic expansion in Australia where we are now invested in every key real estate sector including living, office, hotel and now logistics and industrial.
“MEA’s goal is to expand further in these key sectors with the valuable support of our trusted partners.”
The partnership with ESR is MEA’s fourth joint venture with Australian groups. It is invested with Lendlease to develop a luxury residential block in Sydney waterfront, a build-to-rent venture with Mirvac and a land lease community venture with Stockland.
Mitsubishi Estate, one of the largest real-estate developers in Japan, launched its Australian branch in Sydney in 2021.
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