Singapore-based fund GIC partnering with ESR Cayman, the logistics real estate firm, plans to buy Blackstone’s Portfolio of logistics properties in Australia according to the media. The deal is worth $2.9 billion and is signed in demand for warehouse facilities that are growing amid a booming period of e-commerce fuelled by the pandemic due to Covid-19.
The ESR listed by Hong Kong had formed EMP, an investment vehicle jointly owned with GIC, to bankroll this transaction. It is said that ESR will be contributing 20 percent equity in the investment vehicle and the rest will be invested by the Singaporean sovereign wealth fund.
The properties consist of 45 warehouse and logistics assets held by Blackstone’s Milestone Portfolio in Australia’s major capital cities. The gross leasable space of the properties is 1.4 million square meters. It is a part of a total land area of 3.6 million square meters. It is also said to provide a significant potential for future plans on expansions and developments.
Phil Pearce, chief executive officer of ESR Australia addressed the media and said that the dealt properties are located across Adelaide, Brisbane, Melbourne, Perth and Sydney. EMP is expected to benefit from the persistent growth in the demand for warehouse space in these cities. He also added that “The robust demand for logistics real estate is expected to remain strong due to sustained growth in e-commerce.”
ESR and GIC became the winning bidder for the acquisition of the assets amidst a highly competitive sale process that began early this year with about ten bidders in the first round. It further reduced to five parties.