M&G Real Estate Asia has strengthened its relationship with ESR in Japan through a new logistics partnership.
M&G on behalf of M&G Asia Property Fund, its APAC core direct real estate fund, is buying a “significant stake” in the joint venture which owns ESR Yatomi Distribution Centre.
The partial sale by ESR-managed Redwood Japan Logistics Fund II and Redwood Investor Kawajima values ESR Yatomi DC at more than US$200m (€168m).
Completed in 2018, ESR Yatomi DC, is a fully-leased 95,000sqm multi-let facility located in Yatomi City, Aichi Prefecture, a distribution submarket of Nagoya.
The latest deal marks the second collaboration between M&G and ESR this year in the Japanese market, following the recent closing of ESR Ichikawa Distribution Centre in April.
Stuart Gibson, co-founder and co-CEO of ESR, said the transaction provides a continuing validation of ESR’s model of moving recently completed developments to new vehicles and investment joint ventures where ”capital partners and ESR seek long-term value through lease management and other active asset management initiatives”.
Richard van den Berg, M&G fund manager, said: “Asian logistics has long been identified as a key investment theme for our fund and we are looking forward to further JV-type investment opportunities with ESR across the region as we increase logistics exposure to our higher target weighting.
“We share the same views with ESR on where Asian gateway cities real estate is headed with secular demand for property serving sustainable e-commerce and logistics solutions supporting them.”
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