Singapore-listed ESR-REIT has acquired a 10% stake in the ESR Australia Logistics Partnership (EALP) for A$60.5m (β¬38.6m) in its first foray outside Singapore.
ESR-REIT has become a co-investor with GIC in EALP, which owns 37 prime logistics properties in Australia.
The stake was purchased from ESR Queensland Hold Trust, which had a 20% interest in EALP before the transaction. GIC owns 80% of the platform.
Adrian Chui, CEO and executive director of the manager of ESR-REIT, said the investment in EALP would complement the vehicleβs investment strategy and gave it diversification outside Singapore.
He told ΒιΆΉΣ³» Real Assets that the REIT would focus on (overseas) markets where ESR had a well-established presence and a network of capabilities.
βCurrently, industrial properties in Singapore are on a leasehold basis and the leases are quite short (at around 30 years),β he said.
βEALP presents a unique opportunity to access a portfolio of high-quality freehold assets to diversify our portfolio geographically and to capitalise on the robust logistics market in Australia to strengthen our portfolio,β said Chiu.
ESR-REIT has also bought a logistics facility in Singapore at 46A Tanjung Penjuru β due to be completed this year β for S$119.6m (β¬74m). The building is leased to the state development agency, JTC, for 30 years.
The Trust raised S$150m last week to fund the two investments.
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