Ping An commits $300m to PE-backed logistics platform

The investment will be used to form a joint venture between ESR and Ping An aimed at investing in logistics development projects from ESR's Japan pipeline, which are estimated to total more than $1 billion in construction starts over the next 18 months. Ping An will invest up to 50% in the projects, and has already committed to four co-investments in Tokyo and Nagoya.

Japan's main logistics markets of Tokyo, Osaka and Nagoya are currently experiencing a shortage of warehousing space, with low-single-digit vacancy rates at existing facilities. Industry observers expect to see significant growth in the sector in the near future, due to demand from e-commerce providers and third-party logistics operators.

"Logistics is a stable real estate asset class offering institutional investors predictability and resilience of cash flow," ESR Capital Officer Pierre-Alexandre Humblot said in a statement. "The timing is particularly auspicious for those forward-looking investors wanting to achieve lasting exposure and access to the asset class."

ESR was formed earlier this year when e-Shang, a China-based warehousing operator founded by two local entrepreneurs in conjunction with Warburg Pincus, merged with Asian counterpart Redwood Group. Prior to the merger e-Shang had received around $1.6 billion in PE funding from investors including Warburg Pincus, Goldman Sachs and APG Asset Management; its most recent round in 2014 saw the company receive $650 million from APG, which took a 20% stake in the company.

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• Topics
• North Asia
• Greater China
• Infrastructure
• Real estate
• Expansion
• China
• Japan
• Warburg Pincus Asia
• Ping An
• Growth capital