ESR Group, a Hong Kong-based real estate and investment management firm, has raised $325 million to launch its inaugural real estate private credit fund in South Korea. The fund will focus on credit investments backed by high-quality assets, particularly in sectors aligned with the “new economy.” This includes investments in logistics centers, data centers, infrastructure, and energy transition assets in South Korea.
The company’s strategy leverages long-term growth trends in these sectors, aiming to enhance ESR’s role as a prominent player in Asia’s real estate market. Since its entry into South Korea in 2015, ESR has grown significantly, with assets under management in the country totaling $14.1 billion and covering a gross floor area of 7.2 million square meters as of June 30, 2024.
ESR co-founders and co-CEOs Jeffrey Shen and Stuart Gibson highlighted the firm’s established reputation in private credit markets, particularly in Europe, where it has managed to navigate diverse economic cycles and market shifts. They added, “By leveraging our global experience and local relationships with companies and financial sponsors, ESR is well-equipped to identify and capitalize on high-quality investment opportunities that offer attractive risk-adjusted returns.”
Josh Daitch, ESR Group’s Chief Investment Officer, emphasized that the new fund underscores ESR’s commitment to new economy assets and confidence in South Korea’s growth potential. “This initiative meets the demand for private real estate credit and strengthens ESR’s leadership in real estate development across Asia,” Daitch said. ESR’s local presence and market expertise position it well to capitalize on South Korea’s credit landscape.
Meanwhile, ESR Group, which is publicly listed, is currently subject to a take-private bid from a consortium that includes existing shareholders such as Qatar Investment Authority and Warburg Pincus. Given ESR’s complex ownership structure, the proposal would require approval from 75% of shareholders outside the bidding consortium.
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By Proptechbuzz
By Ravi Kumar
