ESR To Develop One of the Largest Master-Planned Logistics Parks in Japan

PR78087

TOKYO, HONG KONG and SINGAPORE, March 29, 2019 /PRNewswire=KYODO JBN/ --

-Acquires prime Tokyo Bay land as part of US$1 billion initial project

investment-

ESR, a leading Asia Pacific focused logistics real estate platform, has

acquired a prime parcel of land on the Tokyo Bay in the southern part of

Yokohama, Kanagawa Prefecture, Japan to develop one of the largest

master-planned logistics parks in the country. ESR Yokohama Distribution Centre

("ESR Yokohama DC") will represent a total investment of over US$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 sqm, out of a total

buildable area of over 700,000 sqm on site.  

The logistics park is well located to cater to distribution needs within

Greater Tokyo, the most populous metropolitan area in the world at over 37

million and the world's largest urban agglomeration economy. The project is

backed by ESR's Redwood Japan Logistics Fund 2 and high-quality investment

partners including Sam Zell's Equity International ("EI") and a major US

pension fund.

ESR will continue to implement best practices at ESR Yokohama DC, including

multiple green initiatives to protect the environment for the community,

on-site child care and ESR's human-centric design supported by industry-leading

building specifications. The project's total buildable capacity would make it

one of the largest multi-phased logistics parks currently under development in

Japan in both size and value.  

ESR Yokohama DC is strategically located within the Greater Tokyo Bay market.

Its site offers access to major Tokyo area markets and logistics

infrastructure, including Tokyo CBD (45 km), Haneda International Airport (30

km), the Port of Tokyo container terminal (40 km), Yokohama Port (15 km) and

Sachiura Interchange (1 km). A new highway system connecting both the Ken-O and

Tomei expressways is scheduled for completion in 2020, reducing travel time and

increasing further the exceptional access of the site.

Densely populated Yokohama with its availability of a stable workforce is a

preferred location for tenants handling high-value inventory and those that

require seamless, rapid access to Tokyo's retail and e-commerce markets. These

types of ESR clients are also seeking larger floorplates and higher building

specifications which allow for more efficient operations and the flexibility to

embrace the increasing trend of warehouse automation. There is a severe

shortage of high-quality rental warehouse space in the Greater Tokyo Bay Area.  

At the end of the fourth quarter of 2018, the vacancy rate of logistics stock

in Tokyo Bay stood at only 2.4% according to CBRE, with rents expected to rise

over the course of 2019 due to lack of available supply.

Tom Heneghan, CEO of Equity International, stated, "EI, in conjunction with one

of its major US institutional investor relationships, is proud to partner again

with ESR on this visionary project. We have a long history with ESR and its

founders, particularly in Japan. The company has been a proven pioneer in

developing modern logistics facilities in the country for more than a decade."

Stuart Gibson and Charles de Portes, ESR co-CEO and President respectively,

stated, "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. We are delighted to bring many green and innovative

labour force initiatives to support the local community with this large-scale

project, while continuing to strengthen our established partnerships with

leading institutional investors. 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."

About ESR

ESR is the largest Asia-Pacific focused logistics real estate platform by gross

floor area (GFA) and by value of the assets owned directly and by the funds and

investment vehicles it manages [1]. Co-founded by its senior management team

and Warburg Pincus, ESR is backed by some of the world's preeminent investors

including APG, SK Holdings, JD.com, CITIC CLSA, Goldman Sachs, CPPIB, Ping An

and Allianz Real Estate. The ESR platform spans across the People's Republic of

China, Japan, South Korea, Singapore, Australia and India. As of 30 September

2018, the fair value of the properties directly held by ESR and the assets

under management with respect to the funds and investment vehicles managed by

ESR exceeded US$14 billion, and GFA of properties completed and under

development as well as GFA to be built on land held for future development

stood at approximately 11 million square metres in total.

[1] Source: JLL market research report

MEDIA CONTACT

Antonia Au

Group Corporate Communications Director

+852-2376-9617

antonia.au@esr.com

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SOURCE  ESR