ESR inks landmark $3b deal with Blackstone in Australia
Photo: ESR
April 19, 2021
ESR, a Warburg Pincus-backed global logistics real estate company, has agreed to acquire the large Australia logistics portfolio of US fund management giant Blackstone in a landmark A$3.8 billion ($3 billion) deal.
The acquisition of Blackstone’s Milestones Logistics portfolio will be carried out by ESR Milestone Partnership (EMP), a collaborative venture between ESR and Singapore sovereign wealth fund GIC, according to a statement.
At $3 billion, the sale would mark the largest real estate transaction in Australia in five years, according to data compiled by Bloomberg. It will also see ESR emerge as the third-largest logistics landlord in the country, with assets under management of A$7.9 billion.
Health, Solar Add to ESR’s $2.7bn Pipeline
ESR Australia is adding a $83 million pharmaceutical distribution facility and solar-powered plans to its $2.7 billion assets under management.
The Hong Kong-listed logistics group entered into an joint development agreement with DHL Supply Chain to create a 36,000sq m temperature-controlled warehouse in Western Sydney at the ESR Bringelly Road Business Hub.
The move comes as the company banks on temperature-controlled facilities and creating a solar network as Australia’s moves towards net-zero emissions by 2050.
ESR Australia chief executive Phil Pearce said solar energy is going to become more and more of a focus over the coming years.
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ESR Lodha Industrial & Logistics Park in Mumbai
Singaporean sovereign fund GIC and Hong Kong-listed developer ESR are pursuing their mutual interest in India’s industrial real estate market this time together with the launch of a $750 million joint venture to build and acquire industrial and logistics assets in the country.
GIC will hold an 80 percent stake and ESR the remaining 20 percent in the JV, which remains subject to regulatory approvals, according to a joint press release issued Tuesday. The aim is to develop and own institutional-grade industrial facilities across India, while also acquiring core assets in tier one and tier two cities.