Warburg Pincus-backed logistics real estate major ESR Cayman Limited has fully acquired three prime properties in eastern China’s Jiangsu province.
According to a company statement on Tuesday, the three assets are located in what ESR referred to as “the country’s last-mile logistics networks.”
The properties include a fully leased asset with a gross floor area (GFA) of over 160,000 square metres that was developed on a land parcel of over 280,000 square metres.
The second property is being developed on a land parcel of over 60,000 square metres with a GFA of more than 35,000 square metres. It is a construction-in-progress asset and has been fully pre-leased.
The company intends to re-develop the third property, which occupies a land area of about 130,000 square metres into a 150,000 square metre state-of-the-art logistics facility.
“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,” said Jeffrey Shen, co-founder and co-CEO of ESR, in the statement.
“ESR is well-positioned to capitalise on the secular growth opportunities in logistics real estate which flourishes in the new economy.”
The company, which is one of the largest Asia Pacific-focused logistics real estate platforms, has a logistics portfolio of over 300 assets spanning 17.2 million square metres GFA in operation and under development. About 60 per cent of ESR’s tenant base consists of e-commerce and third-party logistics (3PL) businesses.
In January, ESR entered into a strategic partnership with Singapore’s sovereign wealth fund GIC Pte to launch a joint venture with a total equity commitment of $500 million for institutional-grade logistics facilities in key cities across China.
ESR said that its total assets under management (AUM) and GFA in China stood at about $4.8 billion and 6.9 million square metres, respectively, as of December 31, 2019.
Co-founded by Warburg Pincus and its senior management team, Hong Kong-based ESR manages funds and investment vehicles backed by investors including Dutch pension fund manager APG, South Korean conglomerate SK Holdings, Chinese e-commerce giant JD.com, Canada’s biggest public pension fund CPP Investments, and Chinese insurer Ping An. It has operations across China, Japan, South Korea, Singapore, Australia, and India.
ESR, which had about $22.1 billion in total AUM by the end of 2019, went public on the Main Board of the Hong Kong Stock Exchange (HKEX) in November 2019.