Indonesia’s sovereign wealth fund, the Indonesia Investment Authority (INA), has joined ESR Group and  Mitsubishi Corporation’s subsidiary MC Urban Development Indonesia (MCUDI),  to develop and own US$1bn (€933m) worth of logistics assets in Indonesia over five years.

The partners are committed initially to acquiring three assets in Cikarang and Karawang industrial and business hubs on the island of Java, the country’s largest and most densely-populated island.

Ridha Wirakusumah, CEO of INA, said: “Our strategic partnership with ESR and MCUDI aims to meet the evolving needs of the logistics industry and reflects INA’s commitment to sustainable development and economic growth.

“By harnessing our collective expertise, we are poised to create a significant impact on Indonesia’s warehousing landscape and to contribute to the country’s economic progression.”

Kenji Ono, MCUDI’s president director, said Mitsubishi Corporation group first entered the Indonesian real estate market in 2015.

“With the extensive presence of Mitsubishi Corporation group companies in Indonesia – a key market for the company in Southeast Asia – MCUDI understands customers’ needs very well and their appreciation for efficient, high-quality logistics facilities.”

Stuart Gibson, ESR Group co-founder and co-CEO, said the strategic partnership would accelerate ESR’s market reach in Indonesia, bringing together the Group’s best-in-class expertise in development, asset management and fund management, as well as INA’s and MCUDI’s network of customers ecosystem.

Loh Meow Chong, ESR’s country co-head of Indonesia, added: “Our partnership with INA and MCUDI marks the start of ESR’s fund and investment management business in Indonesia.”

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