Hong Kong-listed logistics developer and fund manager ESR has launched a A$1bn (US$616.5bn) Australia-focused logistics partnership, as it embarks on its largest capital raising in the country.
The new core-plus ESR Australia Logistics Partnership (EALP) is seeded with A$715.6m of prime logistics assets already held by the firm, according to a statement.
An unnamed global institutional investor has provided A$450m of initial equity to EALP, which has a A$1bn equity fundraising target.
“This is a significant milestone in the growth of ESR Australia as it substantially completes our strategy of recycling capital from the sell-down of our balance sheet to fund the growth of our business,” said ESR Australia CEO Phil Pearce.
The initial portfolio comprises 20 income-producing assets and 19.4 ha of land, with the majority located across the eastern seaboard.
The portfolio includes recently completed developments, land acquired by ESR over the past 18 months, and assets attained from ESR’s acquisition of Propertylink last year.
“The launch of EALP allows us to capitalise on diminishing land supply and strong tenant demand, developing premium logistics and industrial facilities,” Pearce said.
“We have significant further capital reserves to accelerate our growth and continue as a serious contender for strategic development sites and established assets.”
While the EALP’s cornerstone investor remains unknown, ESR has worked with institutional investors such as Allianz Real Estate, SK Holdings, the Canada Pension Plan Investment Board and APG.
This latest fundraising follows the US$1.8bn raised from its Hong Kong IPO late last year and the launch of its US$500m Chinese logistics joint venture with Singaporean sovereign wealth fund GIC in January.
ESR has US$22.1bn in assets under management across China, Japan, South Korea, Singapore, Australia and India.