APAC’s largest real asset manager ESR Cayman has partnered with PGIM Real Estate’s Asia core strategy to invest US$100m (€86.4m) to acquire a site in Singapore and develop a 64,490sqm warehouse facility.
The site, which has been acquired from POKKA SAPPORO Food & Beverage, will be redeveloped. Construction of the facility will begin this month and is scheduled for completion in the first quarter of 2024.
ESR said POKKA’s logistics arm in Singapore has committed to a 10-year lease of a minimum of 70% of the building space, with an option for further extensions.
Jeffrey Shen and Stuart Gibson, co-founders and co-CEOs of ESR, said: “This is an exciting opportunity for ESR as we leverage our unrivalled development expertise to support POKKA’s business needs by creating space that’s designed to achieve energy efficiency and increase productivity.
“We are also very delighted to establish our first partnership with PGIM Real Estate to invest together in the robust market of Singapore where we see excellent market fundamentals and ongoing strong demand for quality assets.”
Benett Theseira, PGIM Real Estate’s head of Asia Pacific, said: “This is a rare opportunity for PGIM Real Estate to acquire a stake in a prime asset anchored by a high-quality tenant. Our partner, ESR brings an extensive track record in managing logistics developments and properties and, through our collaboration, we are excited that this acquisition and redevelopment project will further extend our regional footprint within the logistics sector.”
Jai Mirpuri, the head of new economy at ESR’s ARA Private Funds, said: “The fully-ramped facility will be built with the most premium specifications and standards, featuring a suite of sustainability features and human-centric design that ESR is renowned for.
”Committed to delivering outstanding design and performance in environmental sustainability, the facility is designed to achieve the BCA Green Mark Platinum certification.”
Rex Macaskill, POKKA Group CEO, said: “We are excited and look forward to the new facility and office space at 4 Benoi Crescent, which will provide us with the expanded scale, modern specifications and sustainability features to support our growth and expansion into the future.
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