Starwood Capital Acquires 10%+ Equity Stake in Asia's ESR Group

Starwood Capital Group has announced the acquisition of a 10.7% equity stake in ESR Group, a leading real asset manager in the Asia Pacific (APAC) region.

The Transaction
In a structured transaction, Starwood Capital's controlled affiliate will acquire the equity stake alongside ESR's Co-Founders, Stuart Gibson and Charles de Portes. Mr. Gibson will retain his role as Co-Chief Executive Officer and Executive Director, while Mr. Portes will remain a Non-Executive Director. Additionally, the acquisition will result in the complete repayment of outstanding sums under the existing margin loan facility of the co-Founders' holding vehicle.

ESR Group Overview
ESR Group stands as the largest real asset manager in APAC, managing approximately $156 billion in total assets. The company focuses on new economy sectors such as logistics, data centers, and alternatives, boasting a fully integrated development and investment management platform across key APAC markets including Australia, Japan, South Korea, China, Southeast Asia, and India.

Barry Sternlicht's Perspective
Barry Sternlicht, Chairman and CEO of Starwood Capital, emphasizes ESR's leading position in the Asia Pacific real estate landscape, particularly in logistics and data centers—sectors aligned with Starwood Capital's growth objectives. Sternlicht expresses admiration for the business built by Stuart Gibson, Charles de Portes, and co-CEO Jeffrey Shen, highlighting a recent partnership with ESR in Australia and indicating a desire to strengthen this relationship through the current transaction.

Stuart Gibson's Response
Stuart Gibson, Executive Director, Group Co-Founder, and Co-CEO of ESR Group, looks forward to partnering with Starwood Capital as an investor, citing a nearly 20-year acquaintance with Barry Sternlicht. Gibson expresses confidence that Starwood Capital's support will enable ESR to maintain its focus on delivering value to customers, shareholders, and capital partners.

Jeffrey Perlman's Statement
Jeffrey Perlman, Non-Executive Chairman of ESR Group, welcomes Starwood Capital as a significant shareholder and partner, highlighting the firm's global track record in public and private real estate and access to capital as complementary to ESR's strategy. Perlman views Starwood Capital's investment as a vote of confidence in ESR's future prospects.

In summary, the partnership between Starwood Capital and ESR Group is positioned to enhance ESR's market position and growth trajectory in the APAC real estate sector, leveraging the strengths and synergies of both entities.