In 2019, ESR went public at the Hong Kong Stock Exchange and is all set to issue $4.7 billion of consideration shares and vendor loan notes shares. The company will also pay $519 million in cash funded by a $250 million share placement to Sumitomo Mitsui Banking and $269 million in debt and internal resources. The founders of the company include billionaire executive director Shen Jinchu, along with OMERS and JD.com represent 46 percent of its ownership.

ESR chairman Jeffrey Perlman told the media, “Our vision has always been to build a leading fund manager focused on technology-enabled real estate, especially logistics and more recently data centres, on the back of major secular trends including the rapid rise of e-commerce, digital transformation and the financialisation of real estate in Asia Pacific.”

“With the acquisition of ARA, we are very excited to bring two best-in-class businesses together to form Asia Pacific’s number one real asset fund manager powered by the leading New Economy platform.”

The latest deal will merge ESR with its industrial competitor Logos while giving the company control of ARA’s private and public real estate fund management business. Following the merger, ESR will look after 11 real estate investment trusts listed on Singapore, Hong Kong and Korean exchanges.

Credit- w.media

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The project spreads over 38 acre and will serve as the hub for light manufacturing and logistics operations. The logistics park will be ESR’s second development in Chakan. The company said in a statement that of the 38 acres, 26 acres are already leased and will be delivered by May 2021.

In this regard, Abhijit Malkani and Jai Mirpuri, country heads of ESR India, told the media, “Chakan has been a significant location for our expansion in India due to its established industrial ecosystem and increasing demand driven by national and global companies for Grade A spaces in this region.”

In December, it was reported that Singapore-based sovereign wealth fund GIC and Hong Kong-based logistics developer ESR Cayman have announced a $750 million joint venture (JV) to develop and acquire industrial and logistics assets in India. Both parties announced that they have entered into an 80:20 strategic partnership.

The joint venture formed by GIC and ESR Cayman will focus on Tier 1 and Tier 2 cities across India. To begin with, the JV will invest in a 2.2 million sq ft build-to-core asset, located around Mumbai.

Kishore Gotety, co-head (Asia ex-China) of real estate at GIC told the media, “Continued ecommerce growth in India over the long term, reinforced by rising internet penetration, is expected to drive strong demand for industrial and logistics assets.”

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