HK-listed ESR's shareholders weigh options as share price continues to slide

HK-listed ESR's shareholders weigh options as share price continues to slide

Photo: ESR

Top shareholders of ESR Group, the third-largest listed real estate investment manager globally, are looking for options for the company following a sharp decline in its share price, according to a Bloomberg report. 

Some of the group’s investors have been receiving proposals from potential advisors on options, including delisting, said Bloomberg, citing people with knowledge of the matter. The Hong Kong-listed firm has also received interest from potential buyers of the company or some of its major assets, said the people.

No consortium has been established as discussions are in the early stages, and there is no guarantee that the shareholders will move forward with any transaction, according to the sources.

ESR’s market value — HK$42 billion ($5.4 billion) as of Wednesday morning — is currently down 67% since its stock price peaked in early 2021, while Hong Kong’s Hang Seng Index has seen a drop of about 44% in the same period.

The company’s primary shareholders consist of its founders, alongside Warburg Pincus and Omers Administration Corp., according to Bloomberg. Warburg Pincus holds around 13.4% in the group, while Omers has around 10.3%, Bloomberg said, citing ESR’s latest annual report.

ESR manages around $150 billion in total assets, including warehouse and data centres, across key APAC markets, including China, Japan, South Korea, Australia, Singapore, India, New Zealand and Southeast Asia. In 2019, the firm raised around HK$14 billion in its public debut on the Hong Kong stock exchange.

DealStreetAsia recently reported that the firm received a $400-million commitment for its open-ended core fund for South Korea from APG. 

Edited by: Joymitra Rai

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief
Subscribe to Newsletter

This is your last free story for the month. Register to continue reading our content