Hong Kong-listed warehouse owner ESR teams with APG and GIC on US$4 billion warehouse investment fund
- ESR, along with Dutch fund asset manager APG Asset and GIC Private, have committed an initial equity investment of US$1 billion
- The slated platform will create a fund to invest in modern warehousing and industrial mixed-use vehicles in China
ESR Cayman, the largest Asia Pacific-focused logistics real estate platform, has entered into an agreement to launch its latest project in China with a potential investment value of up to US$4 billion, bolstering its strategy of investing in modern logistics facilities across China’s major cities.
The real estate group, along with Dutch fund asset manager APG Asset Management and Singapore sovereign wealth fund GIC Private, have committed an initial equity investment of US$1 billion.
The slated platform will create a fund to invest in modern warehousing and industrial mixed-use vehicles in China that will be sourced, developed and managed by ESR. APG and GIC are long-standing capital partners of ESR.
ESR has one of the largest logistics development pipelines in China’s three major economic cities: Shanghai, Beijing and Guangzhou. It manages a logistics real estate portfolio with US$6.7 billion in assets under management, and 8.5 million square metres of gross floor area as of 2020. The new platform will be ESR’s fifth development fund in China.
Jeffrey Shen and Stuart Gibson, co-founders and co-CEOs of ESR, said the acceleration of e-commerce has been a key factor driving growth in the logistics market in China.
