APAC focused logistics real estate platform ESR Cayman Limited (ESR), has announced the closing of its development joint venture ESR-KS II with APG and Canada Pension Plan Investment Board (CPP Investments) with a total equity allocation of US$1 billion. The joint venture will invest in and develop industrial and logistics properties in South Korea.
ESR-KS II will be seeded initially with a prime land site situated in Incheon City, on which a modern large-scale, multi-tenant facility with a gross floor area (“GFA”) of 154,422 sqm and a gross value of approximately KRW240 billion (approximately US$197 million) will be developed. The facility is planned to serve as a last-mile distribution centre to support the robust logistics demand in Incheon City. With one of the most advanced infrastructure, logistics and transportation systems in the country, Incheon is a strategic market which has a competitive industrial sector as well as a thriving free economic zone.
”E-commerce breakthroughs and a shortage of modern warehousing space are fuelling the continued growth of the logistics sector in the country.”
“We are very pleased to have received strong support from our longstanding partners, APG and CPP investments. 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. We will continue to identify quality assets and projects, building on our industry leading development pipeline and expertise to provide a platform for investors to access institutional quality development opportunities in the burgeoning South Korean market,” said Thomas Nam, CEO of ESR-Kendall Square, ESR’s South Korean platform.
“The ESR-KS II close reflects the excellent relationship we have with our capital partners and is a testament to the strong track record
we have achieved in previous collaborations. We are confident that the state-of-the-art developments of ESR-KS II – managed by ESR’s local team, one of the most experienced in the country and with an unparalleled track record for over two decades – will set another flagship vehicle for the Group that provides our investors with solid returns,” said Jeffrey Shen and Stuart Gibson, Co-founders and Co-CEOs of ESR.