Warburg Pincus-backed APAC logistics real estate platform ESR Cayman Limited (ESR), has acquired a 100% stake in three prime logistics properties in Jiangsu province, East China.
The three assets are strategically located in prominent hubs of the country’s last mile logistics networks. Developed on a land parcel of over 280,000 sqm, the first property is a fully-leased,stabilised asset with a gross floor area (“GFA”) of over 160,000 sqm.
The second property is being developed on a land parcel of over 60,000 sqm with a GFA of over 35,000 sqm. It is a construction-in-progress asset and has been fully pre-leased.
ESR intends to redevelop the third property, which occupies a land area of approximately 130,000 sqm, into a 150,000 sqm state-of-the-art logistics facility of international standards.
“In logistics real estate, asset quality and strategic network are key to success. With this in mind, ESR has focused on developing and managing a strong network of best-in-class logistics facilities in major cities across China and the region. Even in the current global economic environment, logistics real estate has demonstrated considerable resilience. We are confident that the growth of e-commerce and structural change in consumption patterns will continue to fuel the demand for high-quality logistics assets from both investors and tenants. ESR has established a leading position and broad network in China and the APAC region. Leveraging our deep experience in investment, development and management, we continue to build on our competitive advantages to further strengthen and grow our platform. ESR is well positioned to capitalise on the secular growth opportunities in logistics real estate which flourishes in the new economy,” said Jeffrey Shen, Co-founder and Co-CEO of ESR.
In China, ESR has the largest development pipeline and is the biggest e-commerce landlord. As of 31 December 2019, the total AUM and GFA of ESR’s China business had reached approximately US$4.8 billion and approximately 6.9 million sqm, respectively. The Group has strong partnerships with a range of world-class investors and customers attributed to its unrivalled experience and track record.
In January, ESR announced it has entered into strategic partnership with Singapore’s sovereign wealth fund GIC Pte. Ltd. to establish a joint venture to invest in China logistics real estate, with a total equity commitment of US$500 million.