Property Development

ESR Bolsters Logistics Arm With $350m Mandate

Written by The ReReport
As seen in the Source link, written by on 2019-11-12 16:23:33

The company’s Australian arm established its presence down under two years ago through its $102.5 million buy-out of real estate heavyweight Charter Hall’s Commercial and Property Pty Ltd.

ESR is now looking to fast-track its growth as e-commerce sales in the country, which hit ten percent of total retail sales last year, are expected skyrocket by 2025.

“The establishment of this mandate is the first step in a strategy of releasing capital from our balance sheet to fund and accelerate our future developments,” Pearce said.

“ESR has been on an impressive growth trajectory in the 12 months since entering the Australian market.

“We have a robust development pipeline here in Australia, with a number of other opportunities we are pursuing.

It has been a very busy period for ESR since it entered the local market two years ago.

This year, ESR took over ASX-listed fund manager Propertylink for $723 million and it retains a stake in another listed fund manager, Centuria Capital.

ESR floated on the Hong Kong stock exchange this month, marking a rapid rise, after forming in 2016 through the merger of Japan-centric Redwood Group and China-focused e-Shang.

In Australia, it also announced a number of land acquisitions that bolstered the Australian development pipeline to about $1.8 billion in addition to the sale of non-core assets to continue to build its land bank.

The newly-floated industrial property platform, a pan-Asia logistics real estate platform, remains one of the largest in the region, with assets under management of more than $22 billion.