China’s Ping An Real Estate has given $300m (€269m) to a joint venture with recently merged e-Shang Redwood.
The partnership is targeting Japanese logistics developments.
Ping An will co-invest up to 50% in projects from ESR’s $1bn Japan pipeline.
The Chinese insurer has committed to four co-investments in Tokyo and Nagoya, where vacancy levels are in their low single digits.
Charles de Portes, president at ESR, said recent structural changes to the retail and logistics industries globally and within Asia had arguably put logistics real estate on a “secular growth trend”.
“Continued demand, coupled with constrained supply of modern stock in Japan, are predicted to lead to enduring returns for PARE and others invested in the product,” de Portes said.
As reported in January, e-Shang and Redwood merged to create one of Asia’s largest sector specialists.
PGGM recently committed a further $160m to the merged company.
The Dutch pension fund asset manager has invested $430m in the strategy.