Warburg Pincus-backed logistics real estate developer ESR has acquired a prime parcel of land in Japan to develop one of the largest logistics parks in the country, according to an announcement.
The project, ESR Yokohama Distribution Centre, has an investment capital of over $1 billion in the first phase and will initially comprise two modern, four-story logistics facilities with a total gross floor area of 393,226 sq m, out of a total buildable area of over 700,000 sq m on site.
Strategically located within the Greater Tokyo Bay market, the project is backed by ESR’s Redwood Japan Logistics Fund 2 and investment partners including Sam Zell’s Equity International (EI) and a major US pension fund.
“Low vacancy and continued strong demand coupled with the constrained supply of premium space around Tokyo Bay makes this Yokohama site a rare opportunity. It is well positioned to be one of the most valuable investments in ESR’s Japan pipeline,” said Stuart Gibson and Charles de Portes, ESR co-CEO and President respectively.
“ESR Yokohama Distribution Centre bolsters our portfolio of strategically located logistics properties, further enhancing ESR’s ability to support our clients’ business growth, while enabling investors to capitalise on unique opportunities in the Japanese logistics market,” they added.
ESR, which also runs capital and fund management offices in Hong Kong and Singapore, is one of the largest in the Asia-Pacific region, with assets under management of exceeded $14 billion and 11 million square m of projects owned and under development across China, Japan, Singapore, South Korea, and India.
It is also backed by Dutch pension fund managers APG, SK Holdings, JD.com, CITIC CLSA, Goldman Sachs, CPPIB, Ping An and Allianz Real Estate.