ESR has reached an agreement with two major domestic insurance groups to launch a dedicated RMB income fund. This new investment vehicle has a total capacity of RMB 1.6 billion. The move is part of the company’s wider strategy to recycle capital and strengthen its long-term position within the Chinese market. The partnership involves one existing capital partner and a second insurance group that is investing through the ESR China platform for the first time. This deal highlights the ongoing interest from domestic institutional investors in modern logistics assets located in key regions.

Once the customary transaction conditions are met, the fund will take over two of ESR’s multi-storey logistics and industrial sites. These assets are situated in Shanghai and Suzhou, both of which serve as major hubs within the Yangtze River Delta. The properties cover roughly 320,000 square metres of gross floor area and are built to accommodate both industrial manufacturing and warehousing. Currently, the sites host a variety of tenants from the e-commerce, renewable energy, semiconductor, and automotive manufacturing sectors.

ESR plans to keep a minority stake in the fund. The company will also continue to act as the fund and asset manager. This arrangement ensures that ESR remains responsible for leasing and daily operations while maintaining a shared interest with its investment partners. Jeffrey Shen, the Co-founder and Co-CEO of ESR, noted that institutional capital remains interested in the logistics sector.

“We continue to see strong alignment with long‑term institutional capital that recognises the resilience and strategic importance of modern logistics real assets in China. This transaction reflects our ability to partner at scale with domestic institutions to access growth opportunities and our long‑term conviction in high‑quality assets,” said Shen.