K&L Gates Advises on ESR-Managed Fund's Divestiture of Over RMB 5.8 Billion of Logistics Assets in China

Global law firm K&L Gates has advised an international investor in a China logistics develop-to-hold core fund managed by ESR on the fund’s divesture of its portfolio of over RMB 5.8 billion of logistics assets in China. ESR is a leading Asia-Pacific new economy real asset manager.

The divestment comprises a portfolio of nine high-quality logistics assets in Tier 1 and Tier 1.5 cities of China, including Guangzhou, Hangzhou, Shanghai, and Suzhou, where strong consumerism continues to drive the demand for logistics assets. The assets are well-located, close to key transportation hubs and urban centers. Most of the buildings in this portfolio have also obtained LEED gold or silver certifications.  The nine assets, with a total net lettable area of approximately 850,000 square meters have tenant customers that include top companies from e-commerce, third-party logistics, and manufacturing sectors. After the divestment, ESR will continue to manage the assets.

The deal team was led by Asset Management and Investment Funds partner Edward Bennett (Singapore, K&L Gates Straits Law LLC) and Corporate partner Frank Voon (Beijing/Hong Kong), with assistance from senior associate Su Yun Kiew (Corporate, Singapore, K&L Gates Straits Law LLC) and associate Xue Jiang (Corporate, Beijing).

Bennett described the deal as “one of the few high-value, high-quality real asset deals in China this year. It is a significant milestone for both our investor client and ESR, against a challenging economic backdrop. We are delighted to have been part of the advisory team able to show this type of complex transaction is still executable in this region.”

K&L Gates’ Asset Management and Investment Funds practice is one of the largest and most experienced asset management legal teams. We provide bespoke legal services and practical advice across jurisdictions with in-depth understanding of our clients’ business, risk tolerance, and legal expectations.

The firm’s Corporate practice is one of the most substantial in the legal industry, with more than 500 lawyers in offices on five continents providing clients with practical legal solutions in the structuring, financing, and completion of domestic, international, and cross-border transactions.