Blackstone Australian logistics portfolio sold for $3.8 billion

Blackstone Australian logistics portfolio sold for $3.8 billion

The Woolworths distribution centre in Truganina is a key asset in the Blackstone portfolio (provided).

An ESR Australia and GIC joint venture has acquired Blackstone's 'Milestone Portfolio' for $3.8 billion, making ESR the third-largest manager of industrial real estate in Australia.

The deal encompasses 45 high-quality, income-producing assets across Australia's capital cities, and brings ESR's assets under management to $7.9 billion.

The 'Milestone Portfolio' boasts a high quality customer base consisting of national, multi-national, ASX-listed or government clients including Woolworths (ASX: WOW), Lineage Logistics, Toll, Australia Post, Mazda and WesTrac.

To make the acquisition ESR partnered with GIC as its capital partner under a newly formed investment vehicle called EMP which will see ESR contribute 20 per cent of the equity.

ESR CEO Phil Pearce called the deal "transformational", providing the company with immediate scale.

"The opportunity to secure such a large portfolio with extremely well-located assets across Adelaide, Brisbane, Melbourne, Perth and Sydney, strategically positions EMP to benefit from the continued growth in demand for warehouse space, particularly as the robust demand for logistics real estate is expected to remain strong due to sustained growth in e-commerce sales," Pearce said.

"The portfolio is land rich, with low site coverage of only 38 per cent, providing plenty for scope for ESR Australia to redevelop these assets over time."

Never miss a news update, subscribe here. Follow us on LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Advertisement

Related Stories

Luxury developer Spyre Group gets green light for beachfront Coolangatta project

Luxury developer Spyre Group gets green light for beachfront Coolangatta project

The company behind luxury Gold Coast developments Elysian, Natura...

Hearing tech Audeara rises from fledgling startup to $21m ASX listing in six years

Hearing tech Audeara rises from fledgling startup to $21m ASX listing in six years

Six years ago, Audeara (ASX: AUA) was a start-up aiming to make h...

Crown to cough up $12.5m towards Bergin Inquiry

Crown to cough up $12.5m towards Bergin Inquiry

Crown Resorts (ASX: CWN) has revealed it will pay $12 million tow...

Cashless casinos, no junkets as Crown appeases NSW regulator

Cashless casinos, no junkets as Crown appeases NSW regulator

Crown Resorts' (ASX: CWN) casinos will go cashless and all ju...