APAC real estate firm ESR has secured new investment to fund its data center build-out.

The company this week announced that it has secured $850 million in additional equity capital, committed by existing shareholders.

The firm said the funding will strengthen its balance sheet and accelerate execution of its long-term growth strategy across logistics, real estate, and data centers.

Phil Pearce, president of ESR, said: “ESR has entered its next phase of growth with a stronger capital base and a more focused platform. As global capital continues to shift toward APAC, investors are increasingly seeking managers with local depth, strategic clarity, and a proven ability to execute in an evolving market environment."

"We are pleased to be deepening our partnership with leading global investors, who are not only shareholders, but also long-term capital partners across our platform. With a sharpened focus on logistics, real estate, and data centers, we are accelerating development and fundraising while driving sustained growth in leasing and capital deployment. Looking ahead, we remain focused on scaling our core business with discipline and delivering long-term value for our capital partners and customers.”

Formed in 2016 following a merger between e-shang and Redwood Group, ESR has traditionally been focused on logistics real estate, and claims to be the largest logistics real estate company in APAC. The company has made several investments in the data center space since 2021 and claims a 3GW pipeline.

ESR has data center developments planned in Hong Kong, Malaysia, South Korea, Japan, India, and Australia. ESR subsidiary ARA Asset Management also has a data center footprint through its Logos Group unit, which partnered with Pure Data Centres for a 20MW facility in Indonesia.

Previously publicly listed, ESR was taken private last year by a consortium including Starwood Capital Group, SSW Partners, Sixth Street, Warburg Pincus, Qatar Investment Authority, and ESR’s founders. OMERS and Sumitomo Mitsui Banking Corporation also have a stake in the company. ESR said that since its privatization, the company has realized more than $2 billion in net proceeds through divestment of non-core holdings and recapitalization of balance sheet assets.