ESR Group raises $325m for South Korea real estate private credit fund

Hong Kong-headquartered ESR Group has raised $325 million for its first real estate credit investment platform in South Korea.

According to a statement, the credit fund will target credit investments secured by “high-quality” real estate assets with a primary focus on the ‘new economy; assets will include modern logistics centres, data centres, infrastructure and energy transition in South Korea.

ESR said it wants to benefit from structural growth trends in ‘new economy’ assets and strengthens the group’s position as a leader in real estate development in Asia.

Since 2015, ESR has continued to expand in South Korea and now has a total of $14.1 billion assets under management, with a gross floor area of 7.2 million square meters as of June 30, 2024.

Jeffrey Shen and Stuart Gibson, ESR group co-founders and co-chief executive officers (CEOs) said: “ESR has built a strong track record and reputation in private credit markets in Europe, navigating economic cycles and changing market environments.”

They added: “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.”  

Josh Daitch, ESR Group’s 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 capitalis on opportunities in South Korea’s credit landscape.”

Meanwhile, the ERS Group, which is listed, is subject to a take-private takeover bid from a consortium that already includes some existing shareholders, including the Qatar Investment Authority and Warburg Pincus. However, the group’s complex ownerhship structure means that 75% of shareholders not involved in the bidding would need to approve the deal. 

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