ESR establishes largest-ever RMB Income Fund in China
ESR Group (ESR) has established its largest-ever RMB income fund in China.
ESR has established the fund with one of China’s leading insurance companies, launching with a total investment capacity of approximately RMB ¥10 billion ($1.37 billion).
The fund will be seeded with a prime logistics portfolio of ¥2.3 billion ($320 million) and total GFA of more than 350,000 square meters (3.8 million square feet) from ESR’s balance sheet. The transaction is expected to be closed in the second half of this year, subject to regulatory approvals.
The seed portfolio contains six stabilized assets strategically located in major 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. Moreover, ESR aims to increase its rooftop solar power generation for selected assets of the portfolio to further its decarbonization efforts in line with the group’s ESG 2030 Roadmap to set up 1,000 MW of solar power capacity on the rooftops of assets.