Starwood-SSW Consortium Mulls Buyout of ESR Group Amidst Rise in Hong Kong Dealmaking

According to a report from Bloomberg, a consortium consisting of investors including Starwood Capital Group and SSW Partners is considering a potential buyout of Asian warehouse developer ESR Group Ltd. The group is currently speaking with minority shareholders regarding the proposal, although nothing has been finalized. While an announcement may be made as soon as Monday, there is no guarantee that a deal will materialize. This proposed take-private comes amidst a rise in dealmaking activity in Hong Kong, following the example of other companies such as L’Occitane International SA and luggage-maker Samsonite International SA, both of whom are also considering going private. ESR Group Ltd., with approximately $156 billion in assets under management, primarily focuses on logistics and data center sectors in markets such as China, Japan, South Korea, Australia, Singapore, India, and New Zealand. Its market value is currently around HK$42 billion ($5.4 billion). Founded in 1991, Starwood Capital Group has about $115 billion in assets under management and operates in various real estate categories worldwide.