Warburg-backed ESR acquires three logistics properties in eastern China

Nanjing City, Jiangsu Province, China. Source: Jennifer Chen/Unsplash

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.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.