Starwood Capital Group acquires stake in ESR Group to enhance APAC real estate investments
In a significant development in the real estate investment sector, Starwood Capital Group, a prominent global private investment firm with a focus on real estate, announced its acquisition of a 10.7% equity stake in ESR Group. This structured transaction, carried out alongside ESR Co-Founders Stuart Gibson and Charles de Portes, marks a strategic move to consolidate Starwood Capital’s presence in the Asia-Pacific (APAC) real estate market. The deal ensures that Stuart Gibson will continue his role as Co-Chief Executive Officer and an Executive Director, while Charles de Portes will maintain his position as a Non-Executive Director.
This acquisition by a controlled affiliate of Starwood Capital not only signifies the extinguishment of all outstanding sums under the existing margin loan facility of the co-Founders’ holding vehicle but also underscores the confidence in ESR Group’s management and its future. ESR Group, the largest real asset manager in APAC, boasts approximately $156 billion in total assets under management. The Company’s assets, focused on the burgeoning sectors of logistics, data centres, and alternatives, span key APAC markets including Australia, Japan, South Korea, China, Southeast Asia, and India.
Barry Sternlicht, Chairman and CEO of Starwood Capital, expressed his admiration for the business built by Stuart Gibson, Charles de Portes, and co-CEO Jeffrey Shen, emphasizing the pivotal roles of logistics and data centres as key growth areas for Starwood Capital. Sternlicht’s statement, “I have known Stuart for many years and have always been impressed by the business he, Charles and co-CEO Jeffrey Shen have built,” highlights the long-standing relationship and mutual respect between the entities involved.
Stuart Gibson, reflecting on his nearly two-decade-long acquaintance with Barry Sternlicht, welcomed the partnership with Starwood Capital. He highlighted the anticipated support from Starwood Capital, which is expected to bolster ESR’s commitment to delivering value for customers, shareholders, and capital partners alike.
Jeffrey Perlman, Non-Executive Chairman of ESR Group, also welcomed Starwood Capital, acknowledging the investment firm’s global track record and the complementary nature of its scale and access to capital to ESR’s strategy. Perlman’s remarks, “Starwood Capital’s scale, global track record in public and private real estate and access to capital is highly complementary to the Company’s strategy,” encapsulate the optimistic outlook for this partnership.
In summary, Starwood Capital Group’s acquisition of a stake in ESR Group is more than a financial transaction; it is a strategic alliance poised to leverage the strengths of both entities in the dynamic APAC real estate market. The partnership is seen as a testament to the strong confidence in ESR Group’s management and its forward-looking strategies, ensuring a promising horizon for the stakeholders involved.
This strategic acquisition by Starwood Capital Group is a significant move that signals a bullish outlook on the APAC real estate sector, particularly in the logistics and data centre markets. By aligning with ESR Group, known for its substantial asset management and integrated development platform, Starwood Capital is poised to capitalize on the growth opportunities in these sectors. This partnership underscores the importance of strategic alliances in navigating and succeeding in the complex landscape of global real estate investment.