We are a specialist fund manager with a range of funds and mandates and a proven track record.
We have strong fund management capabilities
Our investment management platform features a broad range of funds and investment vehicles that invest in a portfolio of premium logistics and business park properties. We have proven expertise in managing capital on behalf of institutional investors and raising equity or debt via our capital partners.
Our approach is to invest in assets through direct ownership and through the funds we manage, while co-investing.
ESR Australia has an experienced team of investment and fund management professionals and an existing portfolio with a proven track record. The fund management team delivers strong results and grows relationships with global investors. The portfolio of funds and mandates has grown significantly with the introduction of EALT, EOP IV, EALP and EADP.
With a dedicated team of inhouse asset and property professionals, we manage the properties within our funds and mandates as part of our integrated business model.
Features of our Investment Platform:
Well-established, specialist fund manager, strong track record delivering investment outcomes, co-invest in funds we establish.
Access to capital and project funding through relationships with leading global and institutional investors, we act as a single interface to multiple investment opportunities.
Creating new opportunities for investors to gain exposure to the high-growth logistics real estate sector.
We have long-term, multi-market relationships with leading global investors.
One of our co-founders is Warburg Pincus, and our cornerstone investor is OMERS Administration Corporation (Oxford Properties). We have the backing of other preeminent investors including GIC, Partners Group, Townsend Group, APG, SK Holdings, JD.com, Goldman Sachs, CPPIB, Ping An, Allianz Real Estate and CSOBOR Fund. The confidence of our capital partners is evidenced through the ongoing demand for opportunities, and significant investments In our funds and mandates. Through these relationships, we have access to equity and debt for future projects.
We have a range of active investment funds and mandates, providing investors with exposure to core-plus business park assets and core-plus industrial assets primarily across the east coast of Australia.
ESR Australia Logistics Partnership (EALP)
EALP was launched in 2020. Seeded with 25 assets, 21 stable assets and 4 development sites. EALP will focus on delivering a core plus return through exposure to industrial and logistics assets across the risk and quality spectrum.
- 25 Assets
- AUM $730m
- 20% Co-investment
ESR Australia Development Partnership (EADP)
EADP is a develop-to-hold logistics fund providing investors access to high quality development assets in strategic locations on the eastern seaboard. The fund was established in 2020.
- 3 development assets
- Forecast completion value ~$700m
- 60% Co-investment
ESR Australia Logistics Trust (EALT)
EALT was launched in 2019 as a mandate with China Merchants Capital Investment Co. Ltd. Launched as an industrial portfolio with functional warehouse, logistics and business park assets invested predominantly on the east coast of Australia. This fund has commitments to grow to A$350 million over the coming year.
- 11 Assets
- AUM $181m
- 20% Co-investment
ESR Office Partnership IV (EOP IV)
EOP IV was launched in 2019. Currently contains two business park assets providing investors with exposure to office assets in Sydney’s North West with the opportunity for ESR’s active asset management to create value through leasing and capital improvement strategies.
- 2 Business Park Assets
- AUM $148m
- 11% Co-investment
Propertylink Enhanced Partnership (PEP)
PEP was established in 2016 to provide investors with a diversified portfolio of industrial and office assets with the opportunity to deliver value through an active asset management approach, focused on leasing and asset repositioning. The fund was established with the acquisition of a 13 asset portfolio and later expanded through the acquisition of an office building at 50 Ann Street in the Brisbane CBD.
- 1 Assets
- AUM $5m
- 25% Co-investment
Propertylink Australian Industrial Partnership II (PAIP II)
PAIP II was established in 2015 and provides investors with exposure to a portfolio of core-plus and value-add industrial assets, primarily focused on the east coast of Australia. The fund has strategically acquired property where active asset management and targeted capital expenditure can deliver value.
- 14 industrial assets
- AUM $345m
- 17% co-investment
Propertylink Australian Commercial Trust 1 (PACT I)
PACT I was established in 2017 to acquire value-add office investments in Sydney, Melbourne and Brisbane, leveraging an active asset management approach to drive returns through leasing and repositioning strategies. PACT I has acquired a B-Grade office asset in North Sydney that is currently undergoing a major A-Grade refurbishment program.
- 1 Office Asset
- AUM $239m
- 15% Co-investment
Propertylink Office Partnership III (POP III)
POP III was was established in 2016 to provide investors with exposure to office assets in Sydney’s North West with the opportunity for an active asset management to create value through leasing and capital improvement strategies, with a strong focus on asset sustainability initiatives and upgraded NABERs ratings.
- 3 Business Park Assets
- AUM $129m
- 11% Co-investment
Propertylink Commercial and Industrial Investments (PCII)
Propertylink was engaged by SEDCO Capital to acquire and manage core, long term lease commercial and industrial assets under a Shari’ah-Compliant structure. The fund consists of a cold storage facility located near the Gold Coast in Queensland which is fully occupied by a single tenant.
- 1 core cold storage asset
- AUM $35m
- 7.5% co-investment
The outcomes of realised funds and mandates demonstrate the capability and talent of our Funds Management team.
Propertylink Office Partnership II (POP II)
POP II comprised a single A-grade office asset at 320 Pitt Street, Sydney with Telstra occupying 98% of the building with 3 x 5 year lease extension options. The fund’s strategy was to undertake a major repositioning of the asset upon vacancy to deliver an upgraded office asset for conversion to residential use.
Propertylink successfully negotiated the termination of Telstra’s lease extension options to ensure full vacancy in 2020 to commence repositioning works. Following unsocilited enquiries from potential purchases and the ongoing strength of the Sydney office market, the fund strategy was reviewed with investment partners and formally marketed the asset for sale, with divestment completed in July 2017.
- Total Return 37.9%
- Equity Multiple 1.9x
- 5.0% Co-investment
Propertylink Australian Industrial Partnership (PAIP)
PAIP was a portfolio of 36 industrial assets located in major Australian cities, predominantly focused on Sydney and Melbourne. The fund strategy was to acquire assets in major Australian markets and drive rent and capital value through active asset management to deliver stable income and diversified earnings across the portfolio.
The active asset management strategy was delivered through individual asset upgrades, repositioning, major leasing campaigns and strong ongoing property management, generating occupancy of 95%, a 3.6 year WALE and a weighted average cap rate of 7.68% at divestment.
- Total Return 29.5%
- Equity Multiple 1.5x
- 6.25% Co-investment
The fund was established with an Australian based alternative investment manager to deliver stable yields while driving capital value through improved leasing metrics. The fund comprised of a single semi-modern distribution centre in the established industrial area of Braeside in Melbourne. The asset was acquired on a 7.9% yield with a lease term of 7 years. On acquisition the lease term was successfully extended to 15 years, providing investors with strong income security.
Recognising the strong market for long WALE assets, the asset was divested in July 2017 with the sale price reflecting a core market yield of 6.09% and delivering superior returns for investors.
- Total Return 25.0%
- Equity Multiple 1.7x
- 10% Co-investment
Propertylink Office Partnership (POP)
POP was established to acquire a single core-plus office asset in Miller Street, North Sydney which was fully leased, with the New South Wales Government the major tenant. With existing leases due to expire in June 2019, it was the fund’s strategy to reposition the asset for core institutional ownership through a major capital expenditure program.
The asset was diversted in December 2017 to meet the capital requirements of Propertylink’s offshore investment partner. However, the asset was retained within the investment platform, as the seed asset for the PACT I fund where ESR will continue to execute the asset’s strategy to reposition for core institutional ownership.
- Total Return 14.9%
- Equity Multiple 1.4x
- 5.0% Co-investment
Propertylink Australian Logistics Trust (PALT)
PALT was established in 2013 to provide investors with a stable distribution yield under a Shari’ah-Compliant structure. The fund acquired a two long lease, state of the art refrigerated warehouses within the prime industrial precincts of Derrimut in Melbourne’s west and Parkinson in the south of Brisbane.
Yield spreads between cold store facilities and traditional logistics facilities were historically wide at the time of acquisition. Propertylink and investor Al Salam Bank took the view that this disconnect would converged as the real estate cycle matured, at which time an assessment for asset sale would be undertaken.
The assets were divested in February 2017 having achieved a stable income yield and the re-rating of industrial yields over the investment term.
- Total Return 15.3%
- Equity Multiple 1.6x
- 10% Co-investment