Hong Kong-listed real estate investment manager ESR Group has raised  US$325 million for its first credit fund in South Korea.

The platform will target credit investments secured by high-quality real estate assets with primary focus on new economy assets, including modern logistics centres, data centres, infrastructure, and energy transition in South Korea.

“ESR has built a strong track record and reputation in private credit markets in Europe, navigating economic cycles and changing market environments,” Jeffrey Shen and Stuart Gibson, the group’s co-founders and chief executive officers, say in a statement.

“By leveraging our global experience and local relationships with companies and financial sponsors, ESR is well-equipped to identify and capitalize on high-quality investment opportunities that offer attractive risk-adjusted returns.”

With the group’s deep understanding and robust presence in the South Korean market, it is well-positioned to capitalize on the opportunities within the country’s tightened credit market, notes chief investment officer Josh Daitch.

Thomas Nam, CEO of ESR's South Korea platform, adds: “We have seen continued strong investor interest for private real estate credit and are pleased to launch this new product to satisfy that demand. South Korea presents a unique opportunity combining our leading platform and a real dearth of financing options.”

Since 2015, ESR has continued to expand in South Korea, where it has US$14.1 billion in assets under management  and 7.2 million square metres in gross floor area as of June 30 2024.