Pan Asia logistics group ESR has acquired a site in the Greater Tokyo Bay Area to develop a JPY24bn (€201m) facility.
The ESR Ukishima distribution centre will be held in the ESR Japan Logistics Fund III (RJLF3), the development fund ESR set up with Dutch pension fund manager APG and an Asia-based sovereign wealth fund in 2019.
ESR Ukishima DC will be a four-storey logistics facility with a gross floor area of 66,930sqm. It will commence construction in March 2021, with completion expected in August 2022.
Logistics real estate remains a highly-resilient sector despite the recent headwinds facing many asset classes,” said Stuart Gibson, co-founder and co-CEO of ESR.
Gibson said recent events had changed the “just-in-time” inventory model for many retailers, who were now looking to modernise and improve their logistics facilities and capabilities in response to supply chain challenges arising from surging orders.
The global pandemic has accelerated online consumption and structural change in buying habits, he said.
“ESR Ukishima DC is well-positioned to capitalise on robust distribution needs within the Greater Tokyo Area, which has witnessed extremely low vacancy rates and strong potential for rental growth.”