ESR Group, Backed by Warburg Pincus, Considers Sale of China Logistics Assets December 2, 2025 ESR Group Ltd., a major Asia-Pacific logistics property developer backed by Warburg Pincus, is exploring the potential sale of a portion of its assets in mainland China, according to people familiar with the matter. The move highlights the ongoing strategic recalibrations within the global real estate investment and data center sector as firms navigate shifting economic landscapes and capital allocation priorities. The Hong Kong-listed company, which manages a portfolio spanning over 41 million square meters across key markets including China, Japan, South Korea, Australia, and Southeast Asia, is in the early stages of reviewing its holdings. The assets under consideration are understood to be a select number of logistics properties within China. While deliberations are preliminary and no final decisions have been made, the potential divestment could form part of a broader strategy to optimize its capital structure and reinvest in higher-growth opportunities elsewhere in its regional footprint. One of the people, who asked not to be identified discussing private information, noted that the review reflects a "prudent approach to portfolio management" in the current environment. The potential transaction, should it proceed, would be closely watched as a barometer for investor appetite and valuation trends within China's substantial industrial real estate and connected data center infrastructure market. For the industry, a sale by a prominent player like ESR would signal a continued focus on portfolio agility. It underscores how integrated asset managers are actively managing their exposure to different geographies, potentially recycling capital from mature or strategically adjusted markets to fund new developments in regions with accelerating demand for logistics and digital infrastructure. Source: bloomberg
ESR Group, Backed by Warburg Pincus, Considers Sale of China Logistics Assets
