ESR Australia has picked up an 18-hectare infill site from private equity giant Blackstone for $90 million in Brisbane’s southern suburb of Acacia Ridge.
The acquisition, at 1502 Beaudesert Road, was made by ESR Australia Development Partnership (EADP) as part of its strategy to buy key sites on Australia’s eastern seaboard.
The latest Queensland buy follows EADP's July acquisition of a 79-hectare industrial site in south-east Melbourne's Cranbourne West.
EADP is a develop-to-hold partnership with a focus on sites located near infrastructure or proposed infrastructure upgrades in the capital city markets of Brisbane, Sydney and Melbourne.
ESR, the biggest logistics real estate company in the Asia-Pacific region, said it will capitalise on the immediate and future redevelopment opportunities of the Brisbane site which sits near Archerfield airport, and is located 13 kilometres from the Brisbane CBD.
Approval from the Foreign Investment Review Board is currently being sought for the latest transaction.
The Acacia Ridge holding includes a mixture of warehouses and vacant land in an established industrial area. The existing improvements on the site are predominantly older-style warehousing built in the 1960s.
ESR Australia will develop the premium logistics site in stages, with a 2.5-hectare portion available immediately, with development approval in place.
ESR Australia CEO Phil Pearce said the balance of the site would be redeveloped over the next few years.
“We targeted this location due to strong demand for premium logistics assets and the potential for redevelopment in this land-constrained market,” Pearce said.
“An infill site of this scale with holding income in the blue-chip Acacia Ridge precinct is rare, so we’re well-positioned to capitalise on the demand by creating a high-quality logistics estate in one of Brisbane’s best industrial locations.”
ESR has been listed on Hong Kong’s stock exchange since November last year, and operates across China, Japan, Singapore, South Korea, India and Australia.
The latest transaction comes as investors swoop on the sought-after industrial and logistics property sector.
Last month The Urban Developer revealed that Stockland and joint venture partner Fife Group had snapped up a 21.25-hectare parcel of land in Brisbane’s south for $41.5 million.
The industrial development site in Willawong sits about 16 kilometres south of Brisbane CBD.
Also in Brisbane, an industrial asset at 37 Gravel Pit Road in Darra was acquired following a capital raising by Trilogy Funds Management, which saw investors put $18 million into the Trilogy Industrial Property Trust within one week.
Trilogy's latest Darra purchase, 17.6 kilometres south-west of Brisbane city, marks the trust’s first industrial property purchase in Brisbane, taking the total value of its property portfolio to almost $70 million across seven properties.
And earlier this year, Mapletree Logistics Trust snapped up a newly-built A-grade logistics facility at 114 Rudd Street, Inala for $21.25 million.