Asian-backed logistics real estate group ESR has continued its push into the Australian industrial and logistics market capturing a 21-hectare development site for $142.5 million in Horsley Park, 39 kilometres west of the Sydney.
The major industrial property developer is now setting plans in motion to create a new 110,000sq m logistics park comprising six separate warehouses, after purchasing the land from building products group CSR.
ESR has become increasingly busy expanding its land bank after taking over ASX-listed logistics-focused fund manager Propertylink for $723 million earlier this year.
ESR, which has a $1.8 billion development pipeline, is now using Propertylink as the seed platform for its Australian growth, rapidly filling its development book.
“Since establishing our business in Australia last year, we’ve been focused on building a strong foundation on which we can grow in this market,” ESR Australia chief executive Phil Pearce said.
With the addition of these recent land acquisitions to our existing land bank, we are well-positioned to deliver on our strategic priority of developing premium logistics properties in high- demand low-supply locations for our customers.
“We will continue to add to our land bank to ensure ESR is well-positioned to keep capitalising on the opportunity that the Australian market offers with an established presence, substantial team of experts on the ground, and proven capabilities in Australia.”
ESR was formed in 2016 by the merger of the Japan-centric Redwood Group and China-focused e-Shang, co-founded by Warburg Pincus in 2011.
The company is currently the largest Asia-Pacific-focused logistics real estate platform and has targeted Australia as well as China, Japan, Hong Kong and South-East Asia as part of its overall $22.8 billion empire.
In recent months the logistics platform has listed a commercial building at Liverpool in Sydney for $50 million as well as selling a joint venture development in Melbourne's south-east to Singapore property group Ascendas REIT for $111 million.
ESR has also exchanged contracts on a number of major industrial precincts in Sydney, Melbourne and Brisbane, totalling 70-hectares providing close to 330,000sq m of potential future logistics space.