ESR Cayman Limited, the APAC focused logistics real estate platform, has signed a lease agreement for 72,392 sqm (780,000 sqft) with Amazon at its human-centric development project in Kuki City, Saitama (Tokyo Metropolitan area), Japan.
ESR Kuki Distribution Centre (“ESR Kuki DC”) is a 4-storey state-of-the-art logistics facility which commenced operations in September 2018. The facility, designed for the highest standard of environmental performance, incorporates a range of green elements such as roof top solar panels with 2.3 MW of clean energy production capacity.
ESR Kuki DC has been certified as a Class A property by CASBEE (Comprehensive Assessment System for Built Environment Efficiency), the Japan building sustainability rating system similar to the LEED certification.
The site is strategically located within 2.5km of the Kuki Interchange of the Tohoku Expressway and 5.0km from the Shiraoka-Shobu Interchange of the Ken-O Expressway.
“We are very excited to further expand our partnership with Amazon as it firmly demonstrates the continued demand for ESR’s strategically located, state-of-the-art logistics facilities, and the confidence we have earned among major domestic and international clients,” said Stuart Gibson, Co-Founder and Co-CEO of ESR.
“In recent years, with the transformation of the logistics value chain to support the rapid rise of ecommerce, there is a growing need for highly functional, sophisticated and large-scale distribution facilities in strategic locations such as Greater Tokyo.”
“In recent years, with the transformation of the logistics value chain to support the rapid rise of ecommerce, there is a growing need for highly functional, sophisticated and large-scale distribution facilities in strategic locations such as Greater Tokyo. This has been proven by the high occupancy of all the facilities we have developed in this high demand sub-market over the past five years – all of which were leased in short order after completion. Moreover, the introduction of new services and amenities follows our vision of being a ‘customer-first’ platform with an unwavering goal of identifying and delivering integrated logistics warehousing solutions in prime locations for our customers,” he added.
READ ALSO : ESR makes trading debut on SEHK with 7% jump
ESR has long been committed to accelerating its development and consolidating its market leading position in Japan. Over the past three years, the Group has delivered nearly 1 million sqm of development projects in the Greater Tokyo, Osaka and Nagoya markets, representing a nearly fourfold increase in completed GFA, boosting its Japan GFA to 3.1 million sqm.
As of 30 June 2019, the total AUM of ESR’s Japan business rose to US$7.6 billion, jumping by 44% from US$5.2 billion as of 31 December 2018.