ESR Expands Korea Development Joint Venture with APG and CPP Investments to US$1 Billion
SEOUL and HONG KONG, July 5, 2022 /CNW/ – ESR Group Limited (“ESR” or the “Group”) (SEHK: 1821), APAC’s largest real estate asset manager, today announced the growth of its second development joint venture ( “ESR-KS II” or the “Joint Venture”) in Korea with APG and the Canada Pension Plan Investment Board (“CPP Investments”).
ESR-KS II was created by APG, CPP Investments and ESR in June 2020 with 1 billion US dollars that the initial equity allocation and options to increase the total equity investment capacity up to 2 billion US dollars. ESR-KS II is a development joint venture that invests in and develops a premier industrial and warehouse logistics portfolio in the Seoul and Busan metropolitan areas, the two most populous markets and the highest consumer spending in Korea. APG, CPP Investments and ESR have agreed in 2020 to initial investments in the joint venture in the amount of $350 million, 450 million US dollars and $200 millionrepresenting respective interests of 35%, 45% and 20% in the joint venture. The joint venture has deployed more than 80% of the initial capital 1 billion US dollars equity allocation in less than two years with more than 1.3 million m² of Class A warehouses under development.
The joint venture is a successor vehicle to the US$1.15 billion first development joint venture (“ESR-KS I”), of the trio in Korea. To date, a total of 3.9 million m² of Class A warehouse space has been developed (or under development) by ESR-KS I and ESR-KS II. ESR-KS I has disposed of 30% (in equity) of its completed properties to ESR Kendall Square REIT to date, generating total proceeds of more than US$1.38 billion.
Thomas NamCEO of ESR-Kendall Square, ESR’s South Korean platform, said: “Institutional investment in Korea’s logistics sector remains very strong as investors continue to rebalance their allocations to logistics assets amid the ongoing economic downturn. acceleration of e-commerce. KS II reflects the collective confidence of our financial partners in ESR’s ability to capitalize on this secular opportunity. We will continue to build on our strengths in capital management and development to identify quality opportunities and create value for our investors and stakeholders.
Jeffrey Shen and Stuart Gibsonco-founders and co-CEOs of ESR, said, “As APAC’s largest real-asset manager, ESR’s integrated fund management platform has provided its financial partners with access to some of the best secular growth opportunities in the world, propelled by the positive trends of e-commerce, digital transformation and financialization of real estate. We are excited to successfully ramp up another vehicle with our long-standing finance partners and extend our track record of strong and consistent performance across our APAC portfolio. »
Graeme TorreManaging Director and Head of Real Estate at APG, Asia Pacificsaid, “The Korean logistics market has shown resilience during the pandemic, while showing good growth prospects supported by robust growth in e-commerce and third-party logistics. We continue to support the sector, which complements very well with our existing regional logistics exposure and offers very strong risk-adjusted returns that will benefit our pension fund clients and their participants. With the track record and expertise of ESR in the local market, as well as their ESG credentials, we are happy to continue our partnership with RSE and RPC Investissements. »
Gilles ChouManaging Director, Head of North Asia Real Estate at CPP Investments, said, “Korea is one of the most sophisticated internet and e-commerce markets in the world. We continue to see strong demand for quality logistics assets in the country. We are excited to expand our successful partnership with APG and ESR to further capitalize on opportunities in the sector, which we believe will generate stable, long-term returns for the RPC fund. »
ESR-Kendall SquareESR’s South Korean platform, is the country’s largest logistics owner with US$9.2 billion of assets under management (“AUM”) and 4.3 million m² of GFA in December 31, 2021. In addition to its strong fund management track record and best-in-class portfolio of institutional-grade logistics assets, its sustainable approach to investments and operations has gained industry-wide recognition. . In the 2021 Global Real Estate Sustainability Benchmark (“GRESB”) assessment, ESR-KS I was named “Regional Sector Leader” in the Development Benchmark, industrial real estate sector. The fund also received the highest possible rating of 5 green stars, scoring 93 points and topped five “GRESB Development” rankings.
ESR-Kendall Square the properties have also achieved numerous green building awards and certifications, including APAC’s first WELL Gold certification for logistics real estate and a number of LEED Gold certifications.
About the APG
As the largest provider of pensions the Netherlands, APG manages the pensions of 4.8 million policyholders. APG provides executive advisory, asset management, pension administration, pension communications and employer services. We work for pension funds and employers in education, administration, construction, cleaning, housing associations, sheltered employment organizations, medical specialists and architects. APG manages around 586 billion euros (April 2022) in retirement assets. With approximately 3,000 employees, we operate from Heerlen, amsterdam, Brussels, New York, hong kong, Shanghaiand Beijing. www.apg.nl
About RPC Investments
The Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interests of the 21 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified asset portfolios, investments are made worldwide in public equities, private equities, real estate, infrastructure and fixed income securities. Based at Torontowith offices at hong kong, London, Luxemburg, Bombay, New York City, San FranciscoSao Paulo and sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. To March 31, 2022the Fund has totaled C$539 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Facebook Where Twitter.
ESR is APAC’s largest real estate asset manager powered by the new economy and the third largest listed real estate investment manager in the world. With US$140.2 billion of total assets under management (AUM), our fully integrated development and investment management platform spans major APAC markets, including China, Japan, South Korea, Australia, Singapore, India, New Zealand and South East Asiaaccounting for over 95% of GDP in APAC, and also includes a growing presence in Europe and in the United States We offer a diverse range of real estate asset investment solutions and new economy real estate development opportunities across our private fund businesses, enabling financial partners and clients to capitalize on APAC’s most important secular trends. ESR is the largest REIT sponsor and manager in APAC with a total AUM of 45 billion US dollars. Our goal – Space and investment solutions for a sustainable future – drives us to manage sustainably and impactfully and we consider the environment and the communities in which we operate as key stakeholders in our business. Listed on the main board of the Bourse de hong kong, ESR is part of the FTSE Global Equity (Large Cap) Index Series, the Hang Seng Composite Index and the MSCI Hong Kong Index. More information is available at www.esr.com.
SOURCE Canada Pension Plan Investment Board
Show original content to download multimedia: http://www.newswire.ca/en/releases/archive/July2022/05/c4111.html