Logistics assets in Australia continue to be in demand. ESR Cayman and GIC announced their joint venture right after ARA LOGOS Logistics Trust completed the acquisition of five logistics properties for $225.9 million and notable stakes in two property funds with a combined holding of five logistics properties for $178.5 million in January.

On April 18, ESR Cayman announced plans to jointly acquire with GIC Realty a A$3.8 billion ($3.9 billion) portfolio of logistics assets in Australia from Blackstone subject to the relevant approvals. ESR Australia partnered with GIC for the acquisition under a newly formed investment vehicle ESR Milestone Partnership (EMP), in which ESR holds 20% and GIC 80%.

The portfolio comprises 45 income-producing assets across Australia’s major capital cities. With a land area of 3.6 million sq m and gross leasable area of 1.4 million sq m, the site cover is just 38% which means there is much scope for potential development. At the acquisition price, the property portfolio has an initial yield of 4.5% and a Weighted Average Lease Expiry (WALE) of 6.9 years

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