ESR-REIT Management (S) Limited has announced the acquisition of a 100% interest in a freehold logistics property at 18 Foxley Court, Derrimut, Melbourne. The purchase, valued at A$52.5m, is part of ESR-REIT’s strategic expansion in the Australian logistics market.
The newly acquired property, 18 Foxley Court, is an institutional-grade asset boasting a gross lettable area of 23,229 square metres and a building age of approximately nine years. It is fully occupied with a weighted average lease expiry of 4.8 years, offering a first-year net property income yield of 5.7%.
This acquisition complements ESR-REIT’s earlier purchase of five logistics properties in Melbourne, announced on 7 July 2026. Collectively, these acquisitions form a portfolio of six properties, strategically located within Melbourne’s industrial precincts, known for their connectivity and proximity to major transport infrastructure.
The Manager of ESR-REIT highlighted the acquisition’s alignment with their Total Return Strategy, aiming to drive sustainable returns through high-quality, modern logistics assets. The acquisition is expected to be distribution per unit (DPU) accretive, enhancing income quality and providing potential for future growth.
With this move, ESR-REIT continues to leverage its strong Singapore base to capitalise on acquisition opportunities in Australia, maintaining a focus on prudent leverage and disciplined capital management. The completion of the acquisition is anticipated in the third quarter of 2026.
