Developer ESR and Singapore Sovereign Wealth Fund to Invest in China Logistics Facilities

  • Jan 14, 2020
  • Caixin Global

(The Straits Times) — Logistics real estate developer ESR Cayman and Singapore sovereign wealth fund GIC will enter into a joint venture with a total $500 million in equity commitment to develop institutional-grade logistics facilities in key cities across China.

The venture with GIC is subject to the relevant regulatory approval, Hong Kong-listed ESR, which is the sponsor of Singapore-listed ESR Reit, said in a media release on Jan. 13.

The total gross floor area of the China portfolio assets held on ESR's balance sheet and in the funds and investment vehicles it manages comprised 6.62 million square meters, while total assets under management exceeded $4.39 billion, as of June 30, 2019.

"We are excited to extend our partnership with GIC, riding on the successful collaboration the two companies have built in Japan," said Jeffrey Shen, co-founder and co-CEO of ESR.

"As home to the world's biggest e-commerce market, demand for logistics properties will continue to thrive in China as infrastructure such as modern warehousing will be a backbone of the new economy, serving the online and offline needs of retail businesses," he said.

Bloomberg reported last month that ESR, which is backed by private equity firm Warburg Pincus, is considering an initial public offering (IPO) of a real estate investment trust consisting of its South Korean assets that could take place as soon as this year. ESR raised US$1.8 billion in its own IPO in November.