ESR Australia boss Phil Pearce says the group had acquired Blackstone’s Milestone logistics portfolio at “under replacement cost” – given surging industrial land prices – after settling the record $3.8 billion real estate deal on Thursday.

Mr Pearce said ESR had identified almost $1 billion of future development opportunities across the under-utilised 360-hectare portfolio, where just over a third – 1.4 million square metres – of land is occupied by industrial buildings.