ESR to Develop Massive Logistics Project in Greater Tokyo
ESR, the Asia Pacific industrial giant, has announced plans to develop a 306,000 square metre logistics project in Greater Tokyo. The project, called ESR Higashi Ogishima Distribution Centre 2, will be developed under the ESR Japan Logistics Fund III (RJLF3) after raising fresh capital. The company aims to drive Japan’s hub status in global e-commerce and supply chain flows.
Mega-Project by the Bay
The construction of ESR Higashi Ogishima Distribution Centre 2 is set to begin in 2025. The eight-storey shed will be slightly smaller than the first phase of the development, which spans 349,640 square metres. Once completed, the two phases of the project are expected to have a value of over $2.5 billion.
Prime Location and Sustainable Design
The logistics project will be located near Tokyo Bay, just 27 kilometres south of the Japanese capital. It benefits from easy access to Haneda airport and the Bayshore Route highway, connecting Yokohama to Tokyo. The warehouse will feature seismic-base isolation for earthquake resistance and will prioritize sustainability, including onsite energy production and facilities for electrical mobility.
Enhancing Tenant Experience
ESR is committed to providing comprehensive amenities and space solutions for tenants. The project will include a daycare centre and staff recreational areas to support recruitment and staff retention.
Capital Commitment and Expansion
The financial details of the fundraising for the Higashi Ogishima project expansion were not disclosed. However, the new commitment is believed to have brought the RJLF3 platform fund to a final close. ESR acquired the Higashi Ogishima site and developed the first phase under the RJLF2 strategy before selling it to RJLF3. The acquisition of the final phase allowed ESR to reduce its balance sheet stake in the scheme.
ESR currently has total assets under management in Japan worth $29.9 billion, with a portfolio spanning 4.7 million square metres.
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