ESR Cayman said in a statement that the investments in its ESR Japan Income Fund (ESR JIF) is a cornerstone commitment from its sovereign fund backer and it is targeting a gross asset value for the strategy of $10 billion by 2026.

ESR co-founder and co-chief executive Stuart Gibson told the media, “The secular trends fuelling modern logistics real estate growth is still nascent. Logistics facilities are getting larger and larger to meet the increasingly complex needs of the tenants and we are now seeing $1 billion warehousing values. The Japan Income Fund’s scalable structure combines diversification with a capacity to meet this increasing capital intensity.”

Earlier this year, it was reported that ESR was planning to develop a logistics park in India for an investment of around $45 million. The new logistics park will be developed at Chakan near Pune.

The project spreads over 38 acre and will serve as the hub for light manufacturing and logistics operations. The logistics park will be ESR’s second development in Chakan. The company said in a statement that of the 38 acres, 26 acres are already leased and will be delivered by May 2021.

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AXA IM Alts has said that ESR, which is backed by Warburg Pincus, will oversee the development of the project. ESR will also support the leasing programme and management of the completed asset. With flexible unit sizes starting at 5,000 square metres, the logistics facility will be suitable for a diverse range of occupiers.

Laurent Jacquemin, head of Asia Pacific at AXA IM Alts told the media, “This is a rare opportunity to acquire a well-located site suitable for the development of a Grade A logistics facility, an asset class that has proved resilient against the backdrop of the global pandemic.”

Last month, GLP’s Japan-focused REIT has raised around $532 million in a global offering to acquire seven Japanese warehouse properties, the company said in a statement. Through the acquisition, the company is preparing for a busy season in the country’s logistics market.

The portfolio of assets purchased by GLP Japan Real Estate Investment Trust includes six Greater Tokyo facilities and one Osaka-area warehouse. They have a combined leasable area of roughly 328,000 square metres, the company said. The portfolio acquisition was completed on December 11th, 2020.

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The portfolio of assets purchased by GLP Japan Real Estate Investment Trust includes six Greater Tokyo facilities and one Osaka-area warehouse. They have a combined leasable area of roughly 328,000 square metres, the company said. The portfolio acquisition was completed on December 11th, 2020.

GLP further added that it was GLP J-REIT’s biggest acquisition since its initial public offering (IPO) in 2012. The portfolio acquisition now places the company among the largest logistics listed trusts in Japan.

Yoshiyuki Miura, president of GLP Japan Advisors said that during 2020, GLP J-REIT raised approximately $737 million of capital the company is focused on executing its expansion and growth strategies to strengthen its position as a market leader in the J-REIT market.

Last month, Mapletree Investments announced that it acquired more warehouse space in Japan’s logistics market. According to the company, it acquired a 116,319 square metre (1,252,047 square foot) site near the city of Fukuoka.

Wong Mun Hoong, Mapletree’s regional chief executive for Australia and North Asia told the media, “Fukuoka, the gateway to Kyushu, is one of the regions in Japan where the group has a high conviction for modern logistics facilities. “Apart from diversifying our logistics portfolio, this prime land acquisition will enable the group to build a presence in Kyushu, provide quality logistics space to our business partners and deepen our network connectivity in seven out of eight regions in Japan.”

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