ESR announced that they have formed a new joint venture with Singapores GIC to invest $500 million of equity which will focus on developing institutional grade logistics facilities in key cities across China.
“We are excited to extend our partnership with GIC, riding on the successful collaboration the two companies have built in Japan,” said Jeffrey Shen, co-founder and co-CEO of ESR. “This second partnership with GIC is a testament to ESR’s solid capability and track record of developing best-in-class logistics facilities in prime locations across China.”
For ESR, the $500 million joint venture with GIC comes just one month after the logistics specialist announced an office mandate in Australia expected to raise A$138 million (then $94 million). ESR Office Partnership IV, offers investors a slice of a set of business park assets in Sydney and other parts of Australia’s east coast which the developer had picked up in the course of a set of acquisitions which established its $1.3 billion presence down under.
GIC will no doubt be supporting ESRs commitment to logistics in Australia in the future. Just last week the Singaporean fund was revealed to have paid A$366 million to boost its stake in the Dexus Australian logistics trust, increasing its interest to 49% of the unlisted vehicle.