ESR completes large-scale, multi-tenant logistics facility in Ichikawa City, Chiba

On 21 February 2019, ESR announced the completion of a large-scale, multi-tenant logistics facility in Ichikawa City, Chiba prefecture (Greater Tokyo), valued at over US$1 billion.

The site area for ESR Ichikawa Distribution Centre constitutes 102,244 square metres with a gross floor area of 225,007 square metres and represents one of the largest single-asset logistics developments in Greater Tokyo to date. Construction of the expansive, next generation 4-storey logistics facility commenced in September 2017 and was completed in January 2019.

The newly completed centre is located with high visibility in the bustling logistics area adjacent to the junction of Metropolitan Expressway Bayshore Route and Tokyo-Gaikan (ring road) Expressway. It is within 500 metres of the Wangan Ichikawa Interchange and only 20 kilometres away from central Tokyo, offering excellent access to both Narita and Haneda International Airports in addition to the major ports of the Tokyo Bay area.

Through the implementation of an innovative human-centric design, this state-of-the-art logistics facility includes a day-care centre (BARNKLÜBB), offering free childcare, private lounges (KLÜBB Lounge) providing employees with a space to relax and take a break and a community centre. ESR endeavours to create a harmonious and desirable work space to help tenants attract and retain employees whilst enabling mothers with young children to re-enter the work force and continue to contribute to society. As a continued effort to promote our sustainability efforts ESR’s renewable energy division has installed rooftop solar power plants which generate over 1.89 MW of clean energy for the building and the community.

Stuart Gibson, Co-CEO and Co-Founder of ESR stated:
“In recent years, with market trends of transforming distribution and centralizing logistics bases, there is a growing need for highly functional and large-scale distribution facilities in strategic locations such as Greater Tokyo. This has been proven by the 100% occupancy of all the  facilities we developed in this high demand sub market over the past five years and they were all leased in short order after completion. The Ichikawa Distribution Centre is well located to cater to distribution needs within Greater Tokyo, the most populous metropolitan area in the world with a population of circa 39 million. Moreover, the introduction of new services and amenities follows our vision of being a “customer-first” platform with the goal of identifying and delivering integrated logistics warehousing solutions in prime locations for our customers.”

Additional News: Warburg-backed logistics platform ESR files for Hong Kong IPO worth up to 1.5 billion USD
Warburg Pincus-backed logistics real estate platform ESR has filed for an initial public offering in Hong Kong, according to a notice made on 28 February 2019 to the Hong Kong stock exchange. The stock market listing should bring in at least $1 billion, and could be worth as much as $1.5 billion, according to sources familiar with the listing who spoke with Mingtiandi:

At $1.5 billion ESR’s IPO would be the biggest real estate stock debut on the Hong Kong exchange since Dalian Wanda’s $3.7 billion listing in 2014, according to Mingtiandi estimates.

The IPO for ESR, which grew from a 2016 merger between Shanghai-based e-Shang and Japan’s Redwood Group, is expected within the next two quarters, according to the sources. Contacted by Mingtiandi, officials at ESR declined to comment on the planned fundraising.

About ESR

ESR is the largest Asia-Pacific focused logistics real estate platform by gross floor area (GFA) and by value of the assets owned directly and by the funds and investment vehicles it manages[1]. Co-founded by its senior management team and Warburg Pincus, ESR is backed by some of the world’s preeminent investors including APG, SK Holdings, JD.com, CITIC CLSA, Goldman Sachs, CPPIB, Ping An and Allianz Real Estate. The ESR platform spans across the People’s Republic of China, Japan, South Korea, Singapore, Australia and India. As of 30 September 2018, the fair value of the properties directly held by ESR and the assets under management with respect to the funds and investment vehicles managed by ESR exceeded US$14 billion, and GFA of properties completed and under development as well as GFA to be built on land held for future development stood at approximately 11 million square metres in total.