GIC invests $400m with ESR for fund targeting Australian logistics sites

GIC, formerly known as Government of Singapore Investment Corporation, will tip $400 million into ESR Cayman Limited (ESR) vehicle ESR Australia Development Partnership (EADP).

The new fund has a target size of $1 billion, giving it the capacity to acquire and develop logistics property with an end value 3.5 times that.

EADP is being seeded with two development sites acquired by ESR Australia over the past 12 months, both in Sydney’s west: at ESR Horsley Logistics Park (artist’s impression, top), a 20.9a parcel purchased six months ago, and Leppington Industrial Estate (8.7ha).

It is projected these two parcels alone will make way for real estate worth $410m upon completion – specifically, the former is mooted for a c110,000 sqm premium-quality distribution centre, and the latter a 40,000 sqm warehouse.

Three months ago GIC invested $450m on another ESR vehicle: ESR Australia Logistics Partnership (EALP), which aims to acquire income producing assets.

While ESR currently holds a 60 per cent stake in EADP stake, the intention is for this to be reduced to about a fifth – the same as it holds with EALP.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco