An unnamed existing investor with the ESR group has stepped in to recapitalise a RMB4.9bn (€700m) logistics portfolio in China owned by the investment firm.
The 873,000sqm portfolio consists of nine assets located in logistics and industrial hubs across different regions in China, including the Yangtze River Delta Region, the Greater Bay Area, and the Beijing-Tianjin-Hebei Region.
Jeffrey Shen, co-founder and co-CEO of ESR, said the transaction deepened the company’s relationship with “one of our long-time capital partners, with whom ESR has built a strong relationship and track record across strategies and markets”.
“This transaction also represents the largest sell-down of ESR self-developed balance sheet assets to date,” said Shen, adding that the transaction was in line with ESR’s focus on accelerating its asset-light strategy, “an integral part of our long-term growth plan”.
“With completion of this sell-down, ESR Group is well-positioned to achieve another record capital recycling year as we seek to take advantage of increasingly more attractive pipeline opportunities across APAC,” he said.
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