British asset manager M&G has formed a partnership with Asian real estate firm ESR to focus on logistic properties in Japan.
M&G Real Estate – the property arm of M&G – has formed a long-term relationship with ESR Group, according to a statement, on behalf of M&G Asia Property Fund. The fund will deploy up to $350 million in equity to develop a portfolio go logistic properties across Tokyo, Osaka and Nagoya which is expected to increase the gross asset value of the overall portfolio to over $1 billion.
The inaugural project under this partnership will involve a majority interest from M&G in the development of a logistic facility in Nagoya with ESR managing the facility upon completion. The project will commence construction in November 2022 with a target to complete in October 2023.
«The logistics sector is an important part of Japan’s economy and demand for state-of-the-art facilities remains robust,» said Jing Dong Lai, M&G Real Estate’s Asia CEO and CIO.
ESR has been expanding its asset base in recent years including the completion of its acquisition of Singaporean real estate investor ARA Asset Management in January. Following the $5.2 billion deal, ESR became the third-largest listed real estate manager globally with $140 billion in assets under management at the time.
