ESR Group Limited (“ESR” or the “Company”, together with its subsidiaries as the “Group”; SEHK Stock Code: 1821), APAC’s largest real asset manager powered by the New Economy, will develop ESR Higashi Ogishima Distribution Centre (Phase 2) in a prime land located in Greater Tokyo metropolitan area.

The premium location of the land parcel, with an area of circa 6 hectares, sits in the Tokyo metropolitan area, 10 km to Haneda Airport, and is close to the port and central Tokyo, as well as the centres of Yokohama and Kawasaki city. Its proximity and easy access to Bayshore Route makes it a convenient location for delivery routes across the urban areas stretching from Tokyo to greater Yokohama and inland Kanagawa areas. This provides E-commerce, 3PL, cold storage and other leading businesses with the utmost convenience in transportation and connectivity. The planned development known as Higashi Ogishima Distribution Centre 2 (“HO DC 2”) should commence works in 2025 and will be only marginally smaller than the inaugural HO DC 1, boasting a total of circa 306,000 sqm of GFA spread across 8 storeys.

Higashi Ogishima DC 2 will be broadly similar to its predecessor, featuring seismic-base isolation as well as the ‘Human Centric’ design that characterises all ESR large multi-tenanted projects with a daycare centre ( BARNKLÜBB) and recreational areas aimed at enhancing the well-being of the tenants’ employees. It is expected that Higashi Ogishima Distribution Centre 2 will see incremental design changes in connection with ESR’s sustainability agenda of maximising onsite energy production and fostering accelerated adoption of electrical mobility.

Capital for the partial sell-down of the land and related development funding obligations is being provided under the ESR Japan Logistics Fund III (“RJLF 3”), a joint venture that ESR established in 2019. RJLF 3 focusses on the development of premium large-scale logistics facilities in the major metropolitan areas of Japan. Its initial capital commitment of JPY75 billion (US$675 million) was upsized to JPY150 billion (US$1.35 billion) in 2021.

Stuart Gibson, ESR Group Co-founder and Co-CEO, said: “ESR is proud of this initiative which reflects the deep relationship and excellent track record we have established with our investors. We thank our capital partner for their continuous support and confidence in our expertise in developing high-quality logistics assets with strong long-term income potential.

We are delighted to be part of this commitment to drive Japan’s hub status in global e- commerce and supply chain flows amid an undersupply of modern large-scale logistics facilities. As part of ESR’s continued expansion of institution-grade New Economy real estate, our ambition is to develop best-in-class developments to bring long term benefits to the community and the residents.

We look forward to developing ESR Higashi Ogishima Distribution Centre 2, which will be a landmark project with an appealing architectural design as well as comprehensive amenities and space solutions for tenants.”

In Japan, ESR has a total AUM of US$29.9 billion and GFA of 4.7 million sqm as of 30 June 2023.