M&G invests AUD200m to develop logistics real estate partnership in Australia

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M&G has committed AUD200 million (circa GBP100 million) through its indirect fund of funds mandate into a partnership to develop an Australian real estate portfolio investing in the logistics sector.

The ESR Australia Development Partnership (EADP) will acquire sites and develop a portfolio of logistics assets, designed for investors to hold over the long-term. Through its Asian real estate investment team and on behalf of third-party client, M&G is taking a 20 percent stake in the partnership.
 
The partnership is managed by ESR Group, a leading Asia-Pacific logistics real estate company, and was launched a year ago with two Western Sydney logistics projects. It has an active developable land pipeline with an anticipated end value in excess of A$1 billion.
 
ESR Group is committed to set the standard for sustainable development in logistics assets in Asia. By 2025, they are seeking a 50 per cent increase in solar power generation and a 20 percent reduction in energy consumption across the ESR Group’s property portfolio.
 
M&G Real Estate Asia is responsible for managing around USD7.1 billion of assets in the region, investing both directly and indirectly across all sectors of commercial real estate. The team sits within M&G’s GBP67.2 billion Private & Alternative Assets division.
 
Jing Dong Lai, Chief Investment Officer and interim Chief Executive at M&G Real Estate Asia, says: “The logistics sector is a high conviction theme for our real estate portfolios and Australia is a core market for us in Asia-Pacific. Extending our strategic partnership with ESR in this highly competitive market grants us exposure to a high quality, sustainable and modern portfolio of assets to hold over the long-term.”