ESR upsizes Japan Logistics Fund III to JPY150 billion

New capital will fund ESR’s robust development pipeline

TOKYO/SINGAPORE/HONG
KONG – Media OutReach – 6 July 2021 – ESR Cayman Limited (“ESR” or the “Company”, together with its subsidiaries as the “Group”; SEHK Stock Code: 1821), the largest APAC focused logistics
real estate platform, announced a JPY75
billion (circa US$675 million) expansion of ESR Japan Logistics Fund III (“RJLF3”),
a development joint venture established with Dutch pension fund APG (“APG”) and
a global institutional investor. The new capital has effectively doubled the size of RJLF3 to
JPY150 billion (circa US$1.35 billion) in total capital commitment, bringing
the total investment capacity to as much as JPY470 billion (circa US$4.2 billion)
over time.

RJLF3
was established in 2019 with an initial capital commitment of JPY75 billion to
focus on the development of large-scale, state-of-the-art logistics facilities
in the major metropolitan areas of Japan. Since its inception, JPY65 billion
has been committed into five projects, namely ESR
Higashi Ogishima A Distribution Centre (Tokyo), ESR Sachiura Distribution
Centre (Tokyo), ESR Ukishima Distribution Centre (Tokyo), ESR Aisai
Distribution Centre (Nagoya), and ESR Fukuoka Asakura Distribution Centre
(Fukuoka), with a total GFA of approximately 870,000 sqm.

Jeffrey Shen and Stuart Gibson,
Co-founders and Co-CEOs of ESR, said: “Institutional investment in Japan and APAC’s
logistics sector has been very strong, as e-commerce acceleration and
structural shifts in supply chain management continue to fuel demand for well-located,
large-scale modern logistics properties. Against this backdrop, we
are delighted to have created yet another successful vehicle with our
longstanding capital partners and extend our record of delivering consistently solid
performances across our APAC portfolio.”

“Developing logistics assets in Asia
Pacific and particularly in the major economies continues to offer risk
adjusted returns that are attractive to long term investors such as APG. Our
partnership with ESR extends across many jurisdictions and we are delighted
we’ve been able to extend our strategy in the prime locations of Japan,”
commented Graeme Torre, Head of Real Estate for APG Asset Management Asia.

“The supply of
modern institutional quality logistics assets in Japan remains low, while Japanese
household online shopping usage grew 19% in 2020 and is up 11% year to date.
This imbalance is common across the APAC region which is why we are seeing
increasing capital targeting the sector in APAC. The upsize of RJLF3 reflects
the collective confidence of our institutional investment partners in ESR’s
ability to continue capitalise on this robust secular opportunity,” said Josh
Daitch, ESR Group Head of Fund Management & Capital. “We will continue to build
on our capital management and development strengths to identify quality
opportunities for institutional investors who believe in modern logistics across our geographies in the APAC market.”

In Japan, ESR manages US$7.9
billion of best-in-class logistics facilities in strategic locations across major
metropolitan areas in the country. The Group also owns the largest development
pipeline in Greater Tokyo and Greater Osaka.

#ESR