ESR establishes 1.6 billion yuan dedicated renminbi income fund

[SINGAPORE] ESR Group on Tuesday (Apr 21) said it has established a 1.6 billion yuan (S$298.1 million) renminbi income fund to acquire logistics assets, continuing the real estate manager’s strategy of recycling capital in the region.

The real estate manager was privatised in July 2025 and has raised more than US$2 billion in net proceeds through the divestment of non-core holdings and recapitalisation of balance sheet assets since January that year.

The new fund is expected to acquire two ESR logistics and industrial assets in Shanghai and Suzhou, in the Yangtze River Delta economic region.

Jeffrey Shen, ESR co‑founder and co‑CEO, said: “This transaction reflects our ability to partner at scale with domestic institutions to access growth opportunities and our long‑term conviction in high‑quality assets.”

Together, the Shanghai and Suzhou assets comprise about 320,000 square metres of gross floor area and are intended for warehousing and industrial manufacturing uses.

The transaction brings together an existing capital partner and an insurer investing through ESR’s China platform for the first time, noted the company. This demonstrates “continued engagement from domestic institutional capital seeking exposure to modern logistics assets in strategically located markets”, said ESR.

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It will retain an active role as fund manager and asset manager, along with a minority interest in the fund, it added.

Earlier this month, the company said it had secured US$850 million in equity capital to accelerate long-term growth and strengthen its balance sheet. This is intended to fund growth initiatives across ESR’s logistics real estate and data centres platforms.