Asia-Pacific real assets manager ESR has expanded into the Middle East, targeting a $10bn (€8.9bn) pipeline of logistics and digital infrastructure development opportunities across the region over the coming years.
Initially focused on Saudi Arabia and the United Arab Emirates, ESR – now privately owned by a consortium of global investors, including Starwood Capital and Qatar Investment Authority – plans to build a scalable logistics platform to capture opportunities driven by strong structural demand across the Gulf Cooperation Council (GCC) region.
Phil Pearce, president of ESR told IPE Real Assets: “ESR is already actively engaged with several strategic partners and stakeholders across the Middle East as we establish our logistics platform. We have identified a pipeline of opportunities, including potential development projects and strategic land positions, and are progressing discussions on several initiatives.
“Our expansion in the region is underpinned by high-quality local relationships, visible occupier demand and the Middle East’s growing role as a trade and logistics hub connecting Asia, Europe and Africa. Over the past few years, we have built strong relationships across the region and are actively evaluating a range of opportunities and partnerships.”
Pearce said there was strong interest in institutional interest in logistics and digital infrastructure opportunities in the GCC and ESR would evaluate a range of capital formation strategies in line with the growth of the platform.
Asked whether the current Middle East conflict poised a challenge, he responded: “We invest with a long-term perspective and assess opportunities based on economic fundamentals, demand drivers and growth trends.”
Stuart Gibson, co-founder and Co-CEO, ESR, added: “The GCC presents a compelling opportunity for ESR to bring together our development, fund management, and operating capabilities.”
ESR has made senior hires and established an on-the-ground team spanning development, investment and asset management.
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