Deal: Allens has advised ESR on the establishment of its strategic real estate partnerships in Australia: the $1 billion ESR Australia Development Partnership and the ESR Australia Logistics Partnership. 

Value: $1 billion.

Area: Corporate advisory.

Key players: The Allens team consisted of Marc Kemp (partner), Rebecca Sheehy (senior associate), Eve Regnard (senior associate), Anisha Desor (senior overseas practitioner admitted in England and Wales only), Ollie L’Estrange (associate) and Joshua Gunn (lawyer).

Deal significance: The vehicles have been established with cornerstone investor GIC, and are focused on acquiring and developing portfolios of logistics property assets on the eastern seaboard.

ESR is set to expand its $25.4 billion in assets under management in Australia with a newly formed $1 billion ($692 million) develop-to-hold logistics fund partnership with Singapore’s GIC.

“We’re seeing an increasing appetite from our capital partners for logistics assets as the asset class looks to benefit from the growth in adoption of online shopping, a trend which we believe will accelerate,” said Philip Pearce, CEO of ESR Australia. 

VIEW ALL

“The success of our capital recycling and [asset-light] strategy combined with the growing demand for logistics space, and emerging opportunities in adjacent areas such as data centres, makes us optimistic about the prospects for ESR Australia.”

The ESR Australia Development Partnership (EADP) will focus on developing strategically located sites in Sydney, Melbourne and Brisbane that benefit from new or upgraded infrastructure projects, the company said, and comes just three months after the two companies teamed up on an A$1 billion core logistics partnership down under.

“Congratulations to ESR Australia on this exciting milestone,” Mr Kemp, who led the Allens team said.

“We enjoyed working with the energetic and talented team at ESR Australia, and look forward to continuing our relationship as they build their Australian funds management business.”