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Invesco to buy majority stake in ESR's Chinese logistics portfolio

LBR Staff Writer Published 11 September 2017

Invesco Real Estate has agreed to acquire a portfolio of core logistics assets in China from Warburg-backed e-Shang Redwood (ESR).

Through the joint venture deal, Invesco’s real estate division will acquire a majority stake in ESR's portfolio.

ESR will hold an equity interest in the portfolio and will serve as project and property manager of the assets by partnering with the asset management team of Invesco.

The deal, which marks the first joint venture on stabilized assets for ESR, will enable the firm to recycle capital for developing its growth.

The transaction, which also represents Invesco’s first investment in China’s logistics real estate sector, will be closed by the end of October, 2017.

ESR co-CEO and co-founder Jeffrey Shen said: “Invesco’s global capabilities and reputation combined with ESR’s pan-Asia logistics expertise create a much stronger platform for our logistics real estate efforts in the region. 

“In addition to this China transaction, we see many other ways to cooperate across the region with the goal of creating long-term value for our shareholders and investors.”

ESR offers logistics facilities to third-party logistics providers, e-commerce companies, bricks-and-mortar retailers, cold-chain logistics providers and industrial companies. The firm is supported by APG, CPPIB, Goldman Sachs, Morgan Stanley, PGGM and Ping An.

In the Asia-Pacific region, the firm owns around 9m across China, Japan, Singapore, South Korea and India. The company has its capital and funds management offices in Hong Kong and Singapore.

Invesco Real Estate, a subsidiary of Invesco, was established in 1983 and has a workforce of 455. The firm operates 21 offices across the U.S., Europe and Asia.


Image: ESR, Invesco Real Estate tie up for China logistics portfolio. Photo: Courtesy of PinkBlue at FreeDigitalPhotos.net