ESR Australia and capital partner GIC has picked up Blackstone’s $3.8-billion portfolio of warehouse and industrial assets in the largest direct property deal in Australian history.

The deal, finalised on Saturday night, was struck on a 4.5 per cent yield and makes ESR the third-largest manager of industrial real estate in the country behind Goodman Group and Charter Hall.

The 45-asset portfolio returns about $160 million in fully-leased income annually with a 6.9 weighted average lease expiry and includes assets in Sydney, Melbourne, Brisbane, Adelaide and Perth.