Forming a joint venture with the pan- Asian logistics developer, Invesco has bought a majority stake in Chinese logistic portfolio firm e- Shang Redwood(ESR) for RMB 2bn ($305.1 million). According to the two companies, the joint venture was designed for acquisition and ongoing asset management of the portfolio that consists of grade-A stabilized logistics real estate assets in China.
According to Invesco’s Managing Director for Asia-Pacific, Cheng Soon Lau, Invesco and ESR team have already developed a strong working relationship. Even though it is the first time Invesco has invested in Chinese logistics as a part of footprint expansion in Asia, Invesco is ready to grow the partnership with ESR. According to the deal, ESR will keep an equity interest in the portfolio while acting as the project and property manager of the asset. The deal is expected to close by late October 2017.
According to the co- chief executive and co–founder of ESR, Jefffrey Shen, there are many other areas of cooperation between the two companies in order to create long- term value addition to the shareholders and investors.
An independent investment management firm, Invesco manages more than $906 billion in assets worldwide on behalf of its clientele. Expanding in 20 countries, Invesco specializes in investment teams that manage a comprehensive range of asset classes, investment styles across geographies. Invesco employs 7,000 employees and has a solid financials, an investment grade debt rating and also boasts a strong balance sheet.
About e-Shang Redwood (ESR)
A pan-Asia logistics real estate developer, ESR is backed by some of the world’s most prominent investor including APG, War-burg Pincus, PGGM, CPPIB, Ping An and Morgan Stanley. ESR is the owner and operator of many real estate projects in key metropolitan areas and it represents one of the largest platforms managing 7.3 million square meters of projects in China, Japan, Singapore and South Korea.