New record low
A total of 16 new investment funds were launched during third quarter 2023, half of the total funds launched in second quarter 2023, the lowest number of fund launches since first quarter 2023. The new investment funds are seeking to raise an aggregate of approximately $8.3 billion.
ESR Group’s ESR China Income Fund was the largest fund to launch during third quarter 2023. The fund is seeking to raise approximately $1.4 billion and is established with one of China’s leading insurance companies. The fund will be seeded with a prime logistics portfolio of ¥2.3 billion ($316 million) from ESR’s balance sheet, and 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.