We made significant progress in 2020 across all facets of our business, as a testament to our team’s adaptability and resilience. And, there’s more to come in 2021. To begin with, we’re launching projects at two of our premier estates, ESR Horsley Logistics Park in Western Sydney and ESR Clayton Business Park in Melbourne in Q1 2021. Keep an eye out for updates.
In 2020, our funds management business launched two new investment vehicles and generated significant capital. The development function oversaw the launch of numerous new ESR Australia estates and development projects. Our property and asset management team landed some strategic acquisitions and effectively managed our portfolio to maintain occupancy and help our customers affected by the pandemic.
We also refocused on our core competencies, divesting of our construction arm in a management buyout.
$2.5 billion in capital raisings
In 2020 we launched two new investment vehicles and raised $2.5 billion in equity:
- Launched our flagship logistics fund, ESR Australia Logistics Partnership (EALP) and raised $1 billion in capital
- Closed on $400m in capital through our new partnership, ESR Australia Development Partnership (EADP).
Land bank expansion
Our capital raisings allowed for the expansion of our land bank in strategic pockets of Australia’s eastern seaboard including Acacia Ridge in Queensland and Cranbourne in Victoria. Our development pipeline grew to $1.89 billion. We have more than doubled our landbank in the past year, which currently stands at 159 ha.
Closing EALP also enabled the vehicle to purchase a portfolio from another investment fund that ESR Australia managed, bringing EALP’s AUM to over $1 billion.
Significant development progress
Over 100,000 sqm of industrial and logistics development projects commenced in 2020.
The year was also marked by the completion of our premier commercial offerings, 73 Miller Street, North Sydney, and Stage 1 of our development at Wellington Place in Mulgrave. We are excited to welcome oOh!media and TTW at 73 Miller and Nissan to Wellington Place.
Driving customer outcomes
Our Property team threw themselves into assisting customers navigate the commercial environment created by the COVID-19 pandemic. We’re pleased that we could support our customers during this time. Happily, the majority are moving towards pre-pandemic operations.
The team also completed 61 leasing deals for over 150,000 sqm, for customers such as DHL, BWX, SKIA Australia, TTW, Australia Post, Toll, New Age Caravans and LifeHealthcare. A credit to their hard work throughout the uncertainty of the pandemic.
The ESR Australia team grew this year with some important appointments. Matthew Lawson joined us as Deputy Chief Financial Officer, kicking off the succession planning for our current CFO, Tony Groth.
To manage our expansive growth, we appointed General Managers in QLD, NSW and VIC to oversee the development projects in these states.
We continue to work with our customers and partners to grow with their businesses and look forward to the opportunities in 2021.