Singapore-based real asset manager ESR has announced plans to expand into the Middle East, targeting logistics and data centre projects with a potential end value of more than $10 billion.
It plans to establish more than 3 million square metres of logistics and data centre projects across the Gulf Cooperation Council, initially focusing on Saudi Arabia and the UAE.
ESR said demand for modern logistics infrastructure in the region is being driven by economic growth, expanding trade corridors and changing supply chains.
Institutional-grade logistics facilities account for less than 20% of total stock in the UAE and less than 10% in Saudi Arabia, ESR said, adding that Grade A facilities in both markets are nearing full occupancy.
ESR said it has already hired senior executives and established an on-the-ground team covering development, investment and asset management.
The team will oversee project origination and delivery, capital deployment and strategic partnerships across the region.
The expansion extends ESR’s Asia-Pacific strategy into the Middle East as trade and investment links between Asia and the region deepen, the company said.
“The GCC presents a compelling opportunity for ESR to bring together our development, fund management and operating capabilities,” co-founder and co-CEO Stuart Gibson said.
President Phil Pearce said the company aims to build a regional platform by combining local market expertise with its logistics real estate and data centre capabilities and global network of institutional capital partners.
“Our ambition is to build a durable regional platform that delivers long-term value for customers, investors and communities across the GCC,” Pearce said.
ESR manages real assets including logistics facilities, data centres and infrastructure across Asia-Pacific and has operations in Europe and the Middle East.
The firm recently signed an agreement to acquire 100% of clean energy platform Aquila Clean Energy APAC (Aquila Clean Energy) from Aquila Group, a Hamburg-based investment and industrial development company.
Aquila Clean Energy is a Singapore-headquartered clean energy platform that develops, owns and operates solar, battery storage and wind assets across the region.
