ESR Group begins construction of largest distribution hub in Japan of 750,000 sqm

The ESR Kawanishi Distribution and Techno Park will function as a logistics hub for Japan.

ESR Group, which is the sponsor of several Singapore-listed REITs, has started the construction of the ESR Kawanishi Distribution and Techno Park, which will be the largest distribution hub development in Japan spanning a prime land area of 505,281 sqm (5.44 million sq ft), and a combined gross floor area (GFA) of about 750,000 sqm.

In a press release dated Aug 18, ESR Group says that the park will function as a logistics hub for Western Japan, catering to a mix of tenants including logistics, e-commerce, transport, and retail. It will also facilitate an increase in manufacturing activities spurred by reshoring from Asia back to Japan.

The park will consist of four facilities, which will be built in two phases. Phase one, scheduled to be completed in 1H2025, will feature the first pair of six-storey seismic-isolated facilities with a combined (GFA) of close to 250,000 sqm.

Phase two will commence in 2025, allowing for an additional 500,000 sqm of distribution space, which will make the ESR Kawanishi Distribution and Techno Park the largest distribution hub in Japan.

The statement notes that the park will be designed to accommodate both wide-area logistics and last-mile deliveries, while the logistics park can serve cargo ranging from machinery to food products.

ESR Kawanishi Distribution and Techno Park is 30 minutes away from Osaka and an hour from Kobe and Kyoto. By road, it is four kilometres from Kawanishi IC on the Shin-Meishin Expressway, and a convenient two-minute walk from Ichinotorii Station on the Nose Dentetsu Myoken Line.

Stuart Gibson, ESR Group co-founder and co-ceo said, “Making best use of our experience and expertise, we have started construction on the largest and most significant rezoning projects in Japan, strategically repurposing a prime site for logistics use in close cooperation with the local government. We are delighted to invest in and drive Japan’s hub status in global e-commerce and supply chain flows amid an undersupply of modern large-scale logistics facilities. As part of ESR’s continued expansion of institution-grade New Economy real estate, our ambition is to develop best-in-class developments like the ESR Kawanishi Distribution and Techno Park project to bring long-term benefits to the community and residents.”

As of 31 December 2022, ESR has a development work-in-progress of US$11.9 billion ($16.15 billion), the largest development workbook in APAC. The group achieved a record US$6.5 billion of development starts as well as US$5.5 billion in completion which accelerated in the second half of 2022. In Japan, ESR has a total assets under management (AUM) of US$35.1 billion and approximately 4.7 million sqm of GFA as of Dec 31, 2022.

As at 2.49pm, shares in ESR are trading 2 HK cents lower or 0.18% down at HK$11.30.

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