ESR scoops up strategic equity stake in BW Industrial

January 13, 2023 | 10:57
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ESR Group Ltd. (ESR), through its wholly-owned subsidiary, has acquired a strategic equity stake in BW Industrial Development JSC (BW).
ESR scoops up strategic equity stake in BW Industrial

Since 2021, ESR has teamed up with BW to build a joint venture in Vietnam that has developed the 240,000 square metre My Phuoc 4 project, marking ESR's official foray into the Vietnamese market.

The latest deal is a part of BW's larger primary capital raise of up to approximately $450 million that includes other leading strategic and financial investors in Asia.

Following the deal, ESR is appointing a representative to the board of BW to offer strategic guidance and support the sharing of resources to further speed up BW's growth trajectory.

ESR's co-founders and co-CEOs Jeffrey Shen and Stuart Gibson said, "ESR's strategic investment in BW marks a significant milestone for our business in Southeast Asia. Underpinned by strong growth fundamentals including rapid urbanisation, a fast-rising consumer class, and the exponential growth of e-commerce, Vietnam is witnessing robust demand for its already limited modern logistics and industrial space. As we continue to extend ESR's leading new-economy footprint in APAC, Vietnam will be a valuable market as it offers a dynamic and growing economy, high velocity of development, and strong institutional investor interest."

In the same vein, Lance Li, CEO of BW said, "With the transformative shift of the manufacturing base to Vietnam, as well as the rise of domestic consumption especially via e-commerce, BW is incredibly well positioned to deliver the critical new-economy infrastructure to support the long-term growth of the nation. We are excited to partner with ESR where we can leverage our collective resources, experience, and relationships to cement our market-leading position. Looking forward, we will continue to explore further collaborations, either greenfield developments, acquisitions, or joint ventures, to accelerate our growth trajectory going forward."

BW is Vietnam's largest and fastest-growing pure-play logistics and industrial developer with approximately $2 billion of gross assets under management. Its current portfolio comprises the country's largest land bank of more than 8 million sq.m and more than two million sq.m of gross floor area in operation and under development – over 85 per cent of which is in the key tier-1 cities of Greater Hanoi and Ho Chi Minh City.

Meanwhile, ESR is APAC's largest real asset manager powered by the new economy and the third largest listed real estate investment manager globally. With over $140 billion in total assets under management, ESR's fully integrated development and investment management platform extends across key APAC markets and also includes an expanding presence in Europe and the United States.

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By Thanh Van

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