ESR and GIC enter into $500m JV to invest in China logistics real estate
ESR Cayman has entered into strategic partnership with Singapore’s sovereign wealth fund GIC Pte. to establish a joint venture, with a total equity commitment of $500 million.
“As home to the world’s biggest e-commerce market, demand for logistics properties will continue to thrive in China as infrastructure such as modern warehousing will be a backbone of the new economy, serving the online and offline needs of retail businesses,” said Jeffrey Shen, co-founder and co-CEO of ESR.
The joint venture, which marks ESR’s latest launch in a series of development vehicles, will focus on the development of institutional-grade, state-of-the-art logistics facilities in key cities across China. And it is ESR’s second partnership with GIC.
ESR Cayman has a total portfolio of 6.62 million square meters (71.26 million square feet), and total assets under management in China of more than $4.39 billion as of June 2019.
GIC has been actively expanding its logi