ESR raises US$325 million for its first credit strategy in South Korea

SEOUL / HONG KONG, 25 October 2024 – ESR Group Limited (“ESR” or the “Company”, together with its subsidiaries, the “Group”; SEHK Stock Code: 1821), Asia-Pacific’s leading New Economy real asset manager, has raised US$325 million for its first real estate credit investment platform (the “Credit Fund”) in South Korea, following from its successful track record in European private credit.

The Credit Fund will target credit investments secured by high-quality real estate assets with primary focus in New Economy assets including but not limited to modern logistics centres, data centres, infrastructure and energy transition in South Korea. This strategy is in line with the Group’s focus to benefit from structural growth trends in New Economy assets and further strengthens the Group’s position as a leader in real estate development in Asia.

With a deep understanding of the Korean market and a robust local presence, ESR is uniquely positioned to capitalise on the opportunities within the country’s tightened credit market. The Group’s expertise and established relationships in South Korea enable ESR to navigate the complexities of the market effectively, ensuring optimal outcomes for investors.

Jeffrey Shen and Stuart Gibson, ESR Group Co-founders and Co-CEOs, said, “ESR has built a strong track record and reputation in private credit markets in Europe, navigating economic cycles and changing market environments. By leveraging our global experience and local relationships with companies and financial sponsors, ESR is well-equipped to identify and capitalise on high-quality investment opportunities that offer attractive risk-adjusted returns. Our commitment to excellence and innovation drives us to deliver superior investment solutions that meet the evolving needs of our clients.”

Josh Daitch, ESR Group Chief Investment Officer, said, “Our first Credit Fund in South Korea demonstrates our commitment to New Economy assets and confidence in the country’s growth. This initiative meets the demand for private real estate credit and strengthens ESR’s leadership in real estate development across Asia. With a strong local presence and market understanding, ESR is well-positioned to capitalise on opportunities in South Korea’s credit landscape.”

Thomas Nam, CEO of ESR’s South Korea platform, added, “We have seen continued strong investor interest for private real estate credit and are pleased to launch this new product to satisfy that demand. South Korea presents a unique opportunity combining our leading platform and a real dearth of financing options.”

Since 2015, ESR has continued to expand in South Korea and now leads the market on multiple fronts with its exceptional capability and track record in development as well as funds and asset management. In South Korea, ESR Group has a total AUM of US$14.1 billion and GFA of approximately 7.2 million sqm as of 30 June 2024.