**ESR Group Considers Asset Sales in China to Focus on Other Markets**
ESR Group Ltd., a prominent investor in logistics and industrial properties across the Asia-Pacific region, is reportedly contemplating the sale of some of its assets in China. This decision, driven by a desire to concentrate on other markets, may involve selling assets either individually or as a portfolio, according to sources familiar with the matter.
The company is in the process of appointing advisers to explore options for these potential sales, which could amount to several billion dollars. Despite these considerations, ESR remains committed to the Chinese market, actively seeking new growth and investment opportunities.
In 2024, approximately 27% of ESR’s revenue was generated from Greater China, with 25% coming from Australia and New Zealand, and 22% from Southeast Asia, as detailed in its annual report. The firm manages around $30 billion in assets in Greater China, which includes logistics parks, a data center in Hong Kong, shopping malls, offices in Shanghai, and a life sciences facility. Additionally, ESR has a diverse portfolio of real estate assets throughout Asia and a presence in Europe.
In June, a consortium that included Starwood Capital Group, Sixth Street Partners, SSW Partners, Warburg Pincus, and the Qatar Investment Authority, along with ESR’s founders, completed a buyout of the firm for approximately $7 billion. Following this transaction, ESR was delisted from the Hong Kong stock exchange.
It is important to note that discussions regarding the potential sale of assets in China are still in the preliminary stages and may not result in any transactions. ESR has not provided comments on these developments. Over the past 15 years, foreign investors have poured nearly $140 billion into Chinese real estate, including offices, warehouses, shopping malls, and data centers. However, many are now looking to exit the market as it faces challenges.
**FAQ**
**What is ESR Group considering in relation to its assets in China?**
ESR Group is exploring the possibility of selling some of its assets in China to focus on other markets, while still seeking new investment opportunities in the region.
