ESR Australia Development Partnership (EADP) is paying c$90 million for an 18 hectare industrial investment it classifies a development site in Brisbane’s Acacia Ridge.
The property, 1502 Beaudesert Road, was offloaded by Blackstone managed 151 Property.
It contains 76,909 square metres of lettable area in several 1960s warehouses; 21.5 per cent is vacant.
EADP plans to replace the holding 14 kilometres south of Brisbane with a premium quality logistics estate.
The fund, held with Singapore’s GIC, manages an industrial development pipeline.
Another entity including the pair, ESR Australia Logistics Partnership (EALP), retains investments.
Last month GIC took a majority (80pc) share interest in the latter trust from ESR Australia.
It flagged at that time the ownership structure of EADP would follow suit.
Established, with low supply and high demand: purchaser of Acacia Ridge
EADP described Acacia Ridge as established with low supply and high demand.
“ESR Australia will capitalise on the immediate and future redevelopment opportunities,” a company statement said.
“The significant…holding includes a mixture of income-producing warehouses and vacant land in an established industrial area with few available sites of a similar scale within the precinct.
“This presents an ideal opportunity to secure prospective users seeking larger, contemporary facilities in a premium location (story continues below).
“ESR Australia will develop the site in stages to become a premium logistics estate with the potential for a total Gross Floor Area of approximately 100,000 sqm.
“A 2.5ha pad is available for immediate development of c14,000 sqm with a development approval in place.
“The balance of the site will be redeveloped over the next few years,” the Main Board listed investor’s statement said.
ESR Australia chief executive officer Phil Pearce added “we targeted this location due to strong demand for premium logistics assets and the potential for redevelopment in this land-constrained market”.
“An infill site of this scale with holding income in the blue-chip Acacia Ridge precinct is rare, so we’re well positioned to capitalise on the demand by creating a high-quality logistics estate in one of Brisbane’s best industrial locations,” according to the executive.
“With an immediate development opportunity ready to go on the…southern boundary, this site allows us to leverage our core capabilities of development, leasing and asset management.
The property is near the Acacia Ridge Intermodal Terminal and Archerfield Airport.
“This acquisition comes after the recent closing of EADP and the acquisition of 79 ha in south east Melbourne in July,” Mr Pearce said.
“We’re pleased to continue executing EADP’s investment strategy by providing exposure to the Queensland market.
“EADP is a develop-to-hold partnership focusing on strategically located sites benefiting from infrastructure or proposed infrastructure upgrades in the eastern seaboard cities of Brisbane, Sydney and Melbourne.
“Approval from the Foreign Investment Review Board is currently being sought for this transaction”.