M&G invests $148m to develop logistics real estate partnership in Australia

M&G has committed A$200 million ($148 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 clients, 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 ($740 million).

ESR Group is committed to set the standard for sustainable development in logistics assets in Asia. By 2025, they are seeking a 50 percent increase in solar power generation and a 20 percent redu