[SINGAPORE] ESR has set up a new development partnership with Mitsubishi Estate Asia (MEA) to deliver a prime logistics estate at Huntingwood in Western Sydney, Australia.

The deal value is set at about A$700 million (S$642 million).

The ESR Huntingwood Development Partnership (EHDP) will develop the 18.3-hectare site into a premium, multi-stage logistics estate.

Construction is scheduled to begin in the second half of 2026, with completion targeted from the second half of 2027 onwards.

To be delivered across three stages, the estate will provide up to 114,005 square metres of modern warehousing space. The estate is expected to attract major domestic and international customers seeking modern, efficient facilities with direct access to the M4 Motorway and Great Western Highway, ESR said in a news release issued on Monday (Jun 1).

EHDP is the second partnership between ESR and MEA in two years, building on the ESR Pakenham Partnership set up in 2024.

The latest tie-up further strengthens the relationship between the two companies as they “continue to expand their presence in Australia’s high-demand logistics sector”, ESR added.

The partnership reflects sustained customer demand for premium logistics space, supported by ESR’s development pipeline of over A$10.2 billion (as of Dec 31, 2025) across Australia and New Zealand.

“The Huntingwood estate is designed to meet this need, offering scale and premium facilities in constrained markets,” ESR noted.

Huntingwood Logistics Estate is strategically positioned within Western Sydney, offering connectivity to key freight corridors and proximity to the future Western Sydney International Airport.

ESR pointed out that Western Sydney continues to record historically low vacancy across core industrial precincts, with limited serviced land available.

“Demand for well-located development sites remains strong, driven by population growth, infrastructure investment and occupiers seeking proximity to transport networks and labour pools,” it added.

The joint venture advances ESR’s capital-raising strategy, supporting the accelerated expansion of its development pipeline across core growth markets.

Phil Pearce, president, ESR, said that the partnership demonstrates continued investor confidence in ESR’s Australian platform and development capability.

Yosuke Matsunaga, head of Australia at MEA, noted: “Huntingwood offers everything we look for being scale, location, and a development partner with a proven track record.”