-Acquires prime Tokyo Bay land as part of US$1 billion initial project 
investment-


ESR, a leading Asia Pacific focused logistics real estate platform, has 
acquired a prime parcel of land on the Tokyo Bay in the southern part of 
Yokohama, Kanagawa Prefecture, Japan to develop one of the largest 
master-planned logistics parks in the country. ESR Yokohama Distribution Centre 
("ESR Yokohama DC") will represent a total investment of over US$1 billion in 
the first phase and will initially comprise two modern, four-story logistics 
facilities with a total gross floor area of 393,226 sqm, out of a total 
buildable area of over 700,000 sqm on site.  

The logistics park is well located to cater to distribution needs within 
Greater Tokyo, the most populous metropolitan area in the world at over 37 
million and the world's largest urban agglomeration economy. The project is 
backed by ESR's Redwood Japan Logistics Fund 2 and high-quality investment 
partners including Sam Zell's Equity International ("EI") and a major US 
pension fund.

ESR will continue to implement best practices at ESR Yokohama DC, including 
multiple green initiatives to protect the environment for the community, 
on-site child care and ESR's human-centric design supported by industry-leading 
building specifications. The project's total buildable capacity would make it 
one of the largest multi-phased logistics parks currently under development in 
Japan in both size and value.  

ESR Yokohama DC is strategically located within the Greater Tokyo Bay market. 
Its site offers access to major Tokyo area markets and logistics 
infrastructure, including Tokyo CBD (45 km), Haneda International Airport (30 
km), the Port of Tokyo container terminal (40 km), Yokohama Port (15 km) and 
Sachiura Interchange (1 km). A new highway system connecting both the Ken-O and 
Tomei expressways is scheduled for completion in 2020, reducing travel time and 
increasing further the exceptional access of the site. 

Densely populated Yokohama with its availability of a stable workforce is a 
preferred location for tenants handling high-value inventory and those that 
require seamless, rapid access to Tokyo's retail and e-commerce markets. These 
types of ESR clients are also seeking larger floorplates and higher building 
specifications which allow for more efficient operations and the flexibility to 
embrace the increasing trend of warehouse automation. There is a severe 
shortage of high-quality rental warehouse space in the Greater Tokyo Bay Area.  
At the end of the fourth quarter of 2018, the vacancy rate of logistics stock 
in Tokyo Bay stood at only 2.4% according to CBRE, with rents expected to rise 
over the course of 2019 due to lack of available supply. 

Tom Heneghan, CEO of Equity International, stated, "EI, in conjunction with one 
of its major US institutional investor relationships, is proud to partner again 
with ESR on this visionary project. We have a long history with ESR and its 
founders, particularly in Japan. The company has been a proven pioneer in 
developing modern logistics facilities in the country for more than a decade."

Stuart Gibson and Charles de Portes, ESR co-CEO and President respectively, 
stated, "Low vacancy and continued strong demand coupled with the constrained 
supply of premium space around Tokyo Bay makes this Yokohama site a rare 
opportunity. It is well positioned to be one of the most valuable investments 
in ESR's Japan pipeline. We are delighted to bring many green and innovative 
labour force initiatives to support the local community with this large-scale 
project, while continuing to strengthen our established partnerships with 
leading institutional investors. ESR Yokohama Distribution Centre bolsters our 
portfolio of strategically located logistics properties, further enhancing 
ESR's ability to support our clients' business growth, while enabling investors 
to capitalise on unique opportunities in the Japanese logistics market."

About ESR 

ESR is the largest Asia-Pacific focused logistics real estate platform by gross 
floor area (GFA) and by value of the assets owned directly and by the funds and 
investment vehicles it manages [1]. Co-founded by its senior management team 
and Warburg Pincus, ESR is backed by some of the world's preeminent investors 
including APG, SK Holdings, JD.com, CITIC CLSA, Goldman Sachs, CPPIB, Ping An 
and Allianz Real Estate. The ESR platform spans across the People's Republic of 
China, Japan, South Korea, Singapore, Australia and India. As of 30 September 
2018, the fair value of the properties directly held by ESR and the assets 
under management with respect to the funds and investment vehicles managed by 
ESR exceeded US$14 billion, and GFA of properties completed and under 
development as well as GFA to be built on land held for future development 
stood at approximately 11 million square metres in total.

[1] Source: JLL market research report
 
MEDIA CONTACT
Antonia Au
Group Corporate Communications Director
+852-2376-9617
antonia.au@esr.com 

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SOURCE  ESR