Equity International raises Asia fund to support e-Shang Redwood

The fund, ZEI Asia Fund, has $205 million in commitments, according to a release. It will invest, alongside other capital, in logistics real estate projects developed by ESR; the total value of the projects is expected to be over $2 billion. EI has been a strategic partner of the Redwood Group, which merged with e-Shang earlier this year to create ESR, since 2013.

ESR is one of the largest logistics real estate platforms in Asia, with more than 3.5 million square meters of projects either in operation or under development across the region and another 8 million sqm in its pipeline. The company is planning to raise substantial amounts of capital to support upcoming projects in Japan.

Redwood was founded in 2006 by two executives who had established logistics platforms in Japan for Prologis and AMB; e-Shang began in 2011 as a collaboration between two local entrepreneurs and Warburg Pincus. Backers of Redwood include Dutch pension fund PGGM, Morgan Stanley and PAG, while e-Shang has received around $1.6 billion from investors including Goldman Sachs and APG Asset Management, in addition to Warburg Pincus.

Launched in 1999 by American businessman Sam Zell, EI invests in global emerging markets. Its activity in Asia includes a 2011 commitment of $75 million to Indian hotel developer SAMHI alongside GTI Capital Group. The firm seeks to take an active role in its investments to help them attain industry leadership.

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• Topics
• Greater China
• Infrastructure
• Fundraising
• Infrastructure
• China
• Logistics
• Growth capital