Singapore-listed ESR-REIT has acquired a 10% stake in the ESR Australia Logistics Partnership (EALP) for A$60.5m (€38.6m) in its first foray outside Singapore.
ESR-REIT has become a co-investor with GIC in EALP, which owns 37 prime logistics properties in Australia.
The stake was purchased from ESR Queensland Hold Trust, which had a 20% interest in EALP before the transaction. GIC owns 80% of the platform.
Adrian Chui, CEO and executive director of the manager of ESR-REIT, said the investment in EALP would complement the vehicle’s investment strategy and gave it diversification outside Singapore.
He told IPE Real Assets that the REIT would focus on (overseas) markets where ESR had a well-established presence and a network of capabilities.
“Currently, industrial properties in Singapore are on a leasehold basis and the leases are quite short (at around 30 years),” he said.
“EALP presents a unique opportunity to access a portfolio of high-quality freehold assets to diversify our portfolio geographically and to capitalise on the robust logistics market in Australia to strengthen our portfolio,” said Chiu.
ESR-REIT has also bought a logistics facility in Singapore at 46A Tanjung Penjuru – due to be completed this year – for S$119.6m (€74m). The building is leased to the state development agency, JTC, for 30 years.
The Trust raised S$150m last week to fund the two investments.
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