ESR Australia is buying out one of its managed funds – the Propertylink Australian Industrial Partnership II (PAIP II) – for $302.5 million.
The deal will see 11 east coast assets transferred to another ESR Australia trust, ESR Australia Logistics Partnership (EALP):
- 12A Rodborough Road, Frenchs Forest, NSW
- 98 Kurrajong Avenue, Mount Druitt, NSW
- 2 Costello Place Seven Hills, NSW
- 27 Frank Street, Wetherill Park, NSW (pictured, top)
- 495 Victoria St, Wetherill Park, NSW
- 205 Fairfield Rd, Yennora, NSW
- 7 Viola Pl, Brisbane Airport, QLD
- 17 Sugarmill Rd, Meeandah, QLD
- 130-138 Link Rd, Tullamarine, VIC
- 55-65 Sky Rd, Tullamarine, VIC
- 41-57 South Centre Rd, Tullamarine, VIC
Deal pushes EALP’s value to over $1b
After being seeded in March with 21 income producing assets and a 19.4ha development site, EALP now controls 36 properties with c500,000 square metres of gross lettable area.
The value of the portfolio also pips $1 billion.
The addition of the PAIP II holdings will reweight the fund’s geographic spread too – particularly in Sydney which increases nine per cent to 44pc.
ESR Australia chief executive officer Phil Pearce said as part of the deal, PAIP II investors will achieve an exit in line with the fund’s original strategy.
EALP, he added, “is able to add a quality portfolio of assets with a strong weighting to preferred markets of Sydney, Melbourne and Brisbane” (story continues below).
In September the manager announced the sell down of a 35pc stake in EALP to the only other investor partner, GIC.
The pair co-control another fund, the ESR Australia Development Partnership (EADP), which builds industrial product.
PAIP II rolls into EALP
Established five years ago by the Townsend Group and Norichukin Bank, PAIP II has always focused on retaining Australian east coast logistics assets.
It was controlled by Propertylink, which ESR Australia took over the management of two years ago as part of a 17.1pc equity investment.
ESR Australia will roll over that PAIP II stake to EALP in which it carries 20pc.