ESR, a pan-Asia Pacific real estate platform, on Thursday announced its plans to invest around 35 billion yen ($314 million) in a new logistics facility in Toda, Japan.
The new facility, called ESR Toda Distribution Centre, will be the fifth property in Saitama prefecture managed by ESR, after RW Kazo DC, RW Kawagoe DC, RW Kawajima DC and ESR Kuki, according to a company statement.
ESR Toda DC will be located adjacent to the boundary between Tokyo and Saitama in Greater Tokyo, which is home to around 30 per cent of Japan’s total population. As a four-storey facility with a total gross floor area of 86,400 square metres, it will support distribution demand from around the region.
ESR said that only 5 per cent of total logistics facilities in Japan consists of modern facilities for lease. “The emergence of the new economy, of which advanced logistics infrastructure is a major pillar, has spurred the robust demand for modern, institutional-grade warehouses,” it added.
Construction on the new facility is expected to start in August this year and will be completed by the end of October 2020.
Last month, ESR announced that it had acquired a prime parcel of land in Japan to develop the country’s largest logistics park with an estimated investment of over $1 billion.
ESR is the largest Asia-Pacific focused logistics real estate platform by gross floor area and by the value of assets owned directly and by the funds and investment vehicles it manages. Its platform spans China, Japan, South Korea, Singapore, Australia and India.
As of the end of September 2018, the fair value of the properties directly held by ESR and assets under the management of funds and vehicles managed by it exceeded $14 billion.