Starwood Capital and ESR co-founders take 10.7% stake in ESR Group

An affiliate of Starwood Capital Group, a world non-public funding agency targeted on actual property, has agreed to accumulate a ten.7% fairness stake in ESR Group in a structured transaction alongside ESR co-founders, Stuart Gibson and Charles de Portes.

Gibson will stay co-chief govt officer (CEO) and an govt director of the corporate and Portes will stay a non-executive director on the Hong Kong Inventory Trade (HKEX) listed agency, in accordance with a March 20 media launch.

ESR Group is Asia Pacific’s (Apac) largest actual asset supervisor with roughly $156 billion in complete belongings below administration targeted on the brand new economic system sectors of logistics, knowledge centres and alternate options.

The corporate, which has an workplace in Two Trade Sq. (pictured) in Hong Kong, has an built-in growth and funding administration platform throughout Apac markets together with Australia, Japan, South Korea, China, Southeast Asia (SEA) and India.

Barry Sternlicht, chairman and CEO of Starwood Capital, stated in a press release: “ESR is the main actual property platform in Apac with vital market positions in logistics and knowledge centres, that are key progress areas for Starwood Capital. I’ve recognized Stuart for a few years and have at all times been impressed by the enterprise he, Charles and co-CEO Jeffrey Shen have constructed.”

He added: “Having lately partnered with ESR in Australia, we’re more than happy to increase and strengthen our relationship by way of this transaction. Now we have full religion and confidence within the administration group and sit up for working with all stakeholders over the longer-term.”

Gibson added: “I’ve recognized Barry for practically 20 years and I sit up for partnering with Starwood Capital as an investor. We imagine Starwood Capital’s help will permit ESR to proceed to deal with delivering for our prospects, shareholders and capital companions.”

Pursuant to the acquisition, the entire excellent sums below the prevailing margin Loan facility of the holding automobile of the co-founders can be totally extinguished, the assertion stated.

On March 21 the agency introduced its FY 2023 results for the yr ending December 31, 2023. Belongings uner administration grew by 7.3% to $156.1 billion whereas earnings earlier than curiosity, tax depreciation and amortisation (EBITDA) fell 23.1% to $885 million.  

In Q1 2024 the group stated IT raised roughly $1 billion. This consists of the group’s first perpetual, open-ended logistics core fund in South Korea, holding an preliminary portfolio of seven prime quality class A logistics warehouses value round $2 billion. 

Inexperienced Loan

In November 2023, ESR and property developer Chinachem Group Loan-for-HK-logistics-centre-FINAL.pdf”>closed Hong Kong’s first-ever inexperienced Loan for the event of a logistics centre. The HK$8.8 billion ($1.13 billion) inexperienced Loan was one of many largest in Hong Kong in 2023 and IT can be used to Finance the development of Kwai Chung Chilly Storage Logistics Centre, Hong Kong’s largest chilly storage facility ever to be constructed within the final 20 years.

The five-year Loan was in alignment with the Inexperienced Loan Rules issued by the Loan Market Affiliation, Asia Pacific Loan Market Affiliation and Loan Syndications & Buying and selling Affiliation. The Inexperienced Loan Rules deal with the next 4 core parts: use of proceeds; course of for challenge analysis and choice; administration of proceeds; and reporting.

Sumitomo Mitsui Banking Company, United Abroad Financial institution and Oversea-Chinese language Banking Company acted as mandated lead arrangers, bookrunners and underwriters and inexperienced Loan coordinators. Industrial and Business Financial institution of China (Asia) (ICBC Asia), The Financial institution of East Asia, (BEA), and The Financial institution of East Asia, Singapore department, acted as mandated lead arrangers and bookrunners. Different mandated lead arrangers included China CITIC Financial institution Worldwide. 

Allen & Overy acted because the lead counsel to ESR and Chinachem Group and Mayer Brown acted because the lead counsel to the lenders.

¬ Haymarket Media Restricted. All rights reserved.

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