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ESR Group

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ESR Group Limited
e-Shang Redwood
FormerlyESR Cayman
Company typePublic
SEHK: 1821
IndustryReal Estate
FoundedJanuary 2016; 8 years ago (2016-01)
Founder
  • Shen Jinchu
  • Sun Dongping
  • Stuart Gibson
  • Charles Alexander de Portes
HeadquartersHong Kong
Key people
Jeffrey Perlman (Group chairman)
RevenueIncrease US$871.33 million (FY 2023)
Decrease US$268.06 million (FY 2023)
AUMIncrease US$154 billion (June 2024)
Total assetsDecrease US$16.19 billion (FY 2023)
Total equityDecrease US$8.73 billion (FY 2023)
Number of employees
2,298 (FY 2023)
Websitewww.esr.com
Footnotes / references
[1]

ESR Group Limited (ESR) is an Asia focused Real Estate services and investment company. It focuses on building and managing logistics properties such as warehouses and distribution centers. It is incorporated in the Cayman Islands but headquartered and listed in Hong Kong.

Due to its acquisition of ARA Asset Management in 2022, ESR has become one of the largest real estate investment management companies in the world.[2] In 2022, the company was ranked by PERE (under Private Equity International) as the 4th largest Private Equity Real Estate firm based on total fundraising over the most recent five-year period.[3]

History

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ESR was formed in January 2016 as the result of a merger between e-Shang and the Redwood Group to form e-Shang Redwood which is better known as ESR.[4][5] e-Shang was a Shanghai-based logistics platform that was co-founded by Shen Jinchu and Sun Dongping along with private equity firm, Warburg Pincus.[4] The Redwood Group was a Singapore-based logistics platform founded in 2006 by Stuart Gibson and Charles de Portes who were former employees of Prologis.[6]

In November 2018, ESR acquired Sydney based real estate investment manager, Propertylink for $522 million leading to its delisting from the Australian Securities Exchange in 2019.[7]

In June 2019, ESR announced an initial public offering by listing on the Hong Kong Stock Exchange but postponed its plans due to poor market conditions.[8] On 1 November 2019, ESR completed its initial listing where it raised US$1.6 billion.[8]

In August 2021, ESR announced it would acquire Singaporean Real Estate management firm, ARA Asset Management for US$5.2 billion.[9][10] On 20 January 2022, ESR completed its acquisition of ARA Asset Management. This led to ESR having US$140 billion assets under management making it the third-largest listed real estate investment manager globally.[2] The acquisition also included LOGOS, an Australian logistics real estate firm which was a subsidiary of ARA Asset Management.[2]

In May 2024, ESR announced that Warburg Pincus were in discussions with a consortium that included Starwood Capital Group and Sixth Street Partners to take ESR private. [11]

Business overview

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ESR has three main business lines.[5][12]

  1. Investments (direct Real estate investing)
  2. Fund Management (management of funds and investment vehicles related to properties including REITs)
  3. Development (building and sale of logistics properties including land sourcing, design, construction and leasing)

Most of the properties held in ESR's portfolio are Logistics Parks.

As per the 2020 annual report of ESR, most of its top 10 tenants that it leases to are from the e-commerce sector such as Amazon, JD.com, Coupang and Softbank.[12]

ESR is headquartered in Hong Kong and has additional offices in China, Japan, South Korea, Singapore, Australia and India.[12] Almost all its revenue comes from these regions.[12]

See also

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References

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  1. ^ "2023 Annual Report" (PDF). ESR.
  2. ^ a b c "ESR wraps up $5.2bn ARA Asset Management deal". Private Banker International. 20 January 2022. Archived from the original on 24 January 2022. Retrieved 24 January 2022.
  3. ^ "The PERE 100 bounces back" (PDF). Harrison Street. 2022. Archived (PDF) from the original on 7 July 2022. Retrieved 1 July 2022.
  4. ^ a b "China's e-Shang Merges with Redwood Group". Mingtiandi. 22 January 2016. Archived from the original on 13 September 2021. Retrieved 13 September 2021.
  5. ^ a b "bondsupermart". www.bondsupermart.com. Archived from the original on 13 September 2021. Retrieved 13 September 2021.
  6. ^ "The Redwood Group Company Profile: Acquisition & Investors | PitchBook". pitchbook.com. Archived from the original on 13 September 2021. Retrieved 13 September 2021.
  7. ^ "ESR Finalises $522M Buy-Out of Australia's Propertylink". Mingtiandi. 14 November 2018. Archived from the original on 14 September 2021. Retrieved 14 September 2021.
  8. ^ a b Murdoch, Scott (26 October 2019). "ESR price $1.6 billion IPO at mid point of guided range: sources". Reuters. Archived from the original on 13 September 2021. Retrieved 13 September 2021.
  9. ^ "ESR to Acquire ARA Asset Management for $5.2B". Mingtiandi. 5 August 2021. Archived from the original on 13 September 2021. Retrieved 13 September 2021.
  10. ^ "ESR to buy ARA for $5.2 billion to create No.3 listed property asset manager". Reuters. 5 August 2021. Archived from the original on 14 September 2021. Retrieved 14 September 2021.
  11. ^ Wu, Kane (14 May 2024). "ESR says it has investor group's proposal to take it private". Reuters.
  12. ^ a b c d "ANNUAL REPORT 2020" (PDF). ESR. Archived (PDF) from the original on 14 September 2021. Retrieved 14 September 2021.
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