ESR raises $1.2bn fund for Japan logistics real estate development

Asian logistics real estate developer, ESR (e-Shang Redwood), has completed $575mn in fundraising for its most recent fund, bringing total equity closings for the fund to $1.2bn.

The fund is called Redwood Japan Logistics Fund 2 (RJLF2) and will provide investors in Japan with opportunities to be involved in real estate development.

The $575mn raised at the fund’s closing is slightly more than was expected due to German insurer Allianz having increased its planned investment to $185mn, according to the China Money Network.

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Other investors in the fund included the State Oil Fund of Azerbaijan as well as Southeast Asian and German pension funds.

Pierre-Alexandre Humblot, Head of Private Capital at ESR, said: “RJLF2 has provided first-time investors in Japan logistics real estate a vehicle to access rare institutional quality development opportunities.”

He added: “While we expect large club vehicles to remain prevalent in Asia logistics real estate, we are intent on making development opportunities in ESR markets accessible to discretionary capital in a range of investment sizes.”

ESR’s existing backers include APG, CPPIB, Goldman Sachs, JD.com, PGM, Ping An and SK Holdings. As a whole, the company’s platform has over $12bn assets under management.