ESR, APG, CPP Investments to establish largest logistics real estate platform in APAC

Joint investments of US$1b will be made by APG, CPP Investments, and ESR.

Logistics property firm ESR Cayman has formed a joint venture (JV) with Dutch pension fund manager APG and CPP Investments to establish ESR-KS II, a press release revealed. It is slated to be the largest logistics real estate platform in APAC. The JV will have a total equity allocation of approximately $7.75b (US$1b) with options to further expand. The initial tranche of investments from ESR, APG, and CPP Investments will be approximately $2.71b (US$350m), $3.49b (US$450m), and $1.55b (US$200m), respectively whilst the expansion options could bring the total equity investment to $15.5b (US$2b) over time.

A prime land site in South Korea’s Incheon City was selected to house the development of a large-scale multitenant facility with a gross floor area of 154,222 sqm and a gross value of approximately $1.53b (US$197m). The facility is planned to serve as a last-mile distribution centre to support the robust logistics demand in the city, the press release added.

Thomas Nam, CEO of ESR-KS, said, “E-commerce breakthroughs and a shortage of modern warehousing space are fuelling the continued growth of the logistics sector in the country. The strategic location in a market with constrained supply makes the initial Incheon City seed asset a prime opportunity.”

ESR-KS II is APG’s fourth and CPP Investment’s third collaboration with ESR.

Also Read

Ginza-style commercial building in neighbourhood areas attracts local consumption

Gov’t registers 24 land transactions in Q3

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit