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ESR acquires 18% stake in Propertylink


According to Market Intelligence, December 2022


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ESR acquires 18% stake in Propertylink

ESR Pte. Ltd. acquired an 18.06% stake in Propertylink, which recently rebuffed a takeover offer, through off-market purchases and exposure under a total return swap.

ESR Pte. is a wholly owned subsidiary of ESR Cayman Ltd., which is a pure-play pan-Asia logistics real estate entity focused on the development and management of logistics facilities, according to a release.

The acquisition was earlier reported by The Australian Financial Review's Street Talk, which said broker Citigroup snapped up the A$110 million stake on behalf of an international investor. ESR had no previous stake in Propertylink, the publication noted in its Oct. 3 report, citing a term sheet the broker sent to fund managers.

ESR said it intends to keep open its options in relation to its Propertylink investment, including engaging with Propertylink and other major stakeholders regarding strategic initiatives and a possible boost in its stake in the future.

In September, Centuria Capital Group and its Centuria Industrial REIT subsidiary amassed a combined 17% strategic interest in Propertylink and made an indicative bid for all of its outstanding securities at 95 Australian cents per security. Propertylink's board rejected the offer.

The AFR added that Centuria Capital was looking to raise A$60 million through a rights issue, working with Moelis & Co. and Shaw and Partners, affirming Centuria CEO John McBain's earlier statement that the company intends to press on buying Propertylink despite the rejection.