BLOOMBERG reports:

ESR Cayman Ltd. has agreed to buy a portfolio of warehouse and logistics assets in Australia from Blackstone Group for about A$3.8 billion ($2.9 billion) in the country’s biggest real estate transaction in five years.

The Hong Kong-listed property manager partnered with GIC Pte. for a newly-formed vehicle in the acquisition of the assets, according to a press release on Sunday. The Singaporean sovereign wealth fund will contribute 80% of equity, while ESR will account for the rest. The portfolio consists of 45 assets held by Blackstone’s Milestone Logistics.

Blackstone started the sale process in January and received more than 10 first-round bids, according to the statement. ESR beat out four other shortlisted bidders, it said.

At $3 billion, the sale would mark the largest real estate transaction in Australia in five years, according to data compiled by Bloomberg. It underscores the growth in warehousing, which has become one of the most sought-after property classes, partly because of the surge in online shopping during the pandemic.

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