S Korea’s SK Holdings sells shares worth $406m in logistics realty firm ESR

South Korean conglomerate SK Holdings has pared its holding in Hong Kong-listed global logistics real estate firm ESR Cayman Ltd through a block deal for HK$3.15 billion ($406 million), the firm said on September 17.

Seoul-based SK Holdings sold 140 million shares, or a 4.6 per cent stake in the Asia Pacific-focused logistics real estate platform, at HK$22.5 ($2.9) apiece. SK Holdings retains a 6.4 per cent stake in ESR after the transaction.

“As the payback period in global investment has arrived, we will maintain great investment performances such as with ESR and will continue our efforts to live up to the market’s expectations and keep a virtuous cycle of investment and gain,” said SK Holdings cited by The Korean Herald.

In August 2017, SK Holdings had acquired a 10 per cent fully diluted stake in ESR for 374 billion won ($333 million) in what was the firm’s first investment in the logistics real estate sector and its largest ever minority deal. SK Holdings re-upped its stake in September 2018, ahead of ESR’s $1.6-billion Hong Kong initial public offering (IPO) in November 2019.

Co-founded by its senior management team and Warburg Pincus in 2011, ESR is the largest logistics real estate operator in the Asia Pacific involved in investments, fund management and property development. The ESR platform spans across China, Japan, South Korea, Singapore, Australia and India.

Its investors include Dutch pension fund APG; Chinese e-commerce major JD.com; CPP Investments, which oversees and invests the funds held by the Canada Pension Plan; OMERS, a Canadian Province of Ontario Government pension fund; and Chinese insurer Ping An, among others.

As of June 30, 2020, the fair value of the properties directly held by ESR and the total assets under management (AUM) of the funds and investment vehicles managed by the firm reached about $26.5 billion.

It recorded revenue of $198 million in H1 2020, up 26.9 per cent from $156 million in the same period in 2019, according to its latest financial results.

Singapore Reporter/s

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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.