Asia-Pacific’s largest logistics real estate platform ESR Cayman has entered into a US$500m (€450m) joint venture to invest in China logistics real estate.

ESR said the venture, which is ESR’s second partnership with GIC, will focus on the development of “institutional grade, state-of-the-art” logistics facilities in key cities across China.

Jeffrey Shen, co-founder and co-CEO of ESR, said: “We are excited to extend our partnership with GIC, riding on the successful collaboration the two companies have built in Japan.”

Shen said this second partnership with GIC is a testament to ESR’s solid capability and track record of developing best-in-class logistics facilities in prime locations across China.

“As home to the world’s biggest e-commerce market, demand for logistics properties will continue to thrive in China as infrastructure such as modern warehousing will be a backbone of the new economy, serving the online and offline needs of retail businesses,” Shen said.

In China, ESR’s total gross fixed asset of the portfolio assets held on the group’s balance sheet and in the funds and investment vehicles it manages comprised 6.62m sqm, and total assets under management reached over US$4.39bn, as of 30 June 2019.