ESR Sells Stakes in Yokohama Warehouse to BNPP AM Alts, PGGM

Asian industrial specialist ESR on Monday announced its sale of stakes in a Yokohama warehouse to France’s BNP Paribas Asset Management Alts and Dutch pension investor PGGM.

The newly built ESR Yokohama Sachiura Distribution Centre 3 comprises 165,000 square metres (1.7 million square feet) of gross floor area across four storeys, marking the latest addition to ESR’s multi-phase logistics campus at Yokohama City Port on Tokyo Bay. 

Financial terms weren’t provided, but ESR co-founder and co-CEO Stuart Gibson said the deal reflected a shared confidence in Japan’s role as a key global hub.

“ESR Sachiura is one of seven large campus-scale logistics parks that we have designed and developed to the highest standards and are positioned in the most strategic locations for our investors and customers,” Gibson said in a release. “These flagship assets are well-placed to benefit from strong customer demand, secular rental growth, and a projected undersupply of modern facilities following a period of elevated construction cost pressures across the industry.”

Minority Interest

In a separate statement, BNPP AM Alts disclosed that it had picked up a minority interest in Sachiura DC3, with Singapore-based ESR also retaining a stake in the asset.

As designed by ESR, the building offers amenities including an ocean-view terrace, staff lounges and an on-site childcare centre. The property achieved CASBEE Rank A certification and a six-star BELS energy rating for its sustainability and energy-efficiency performance.

Sachiura DC3 serves both Yokohama and the wider Greater Tokyo market, with access to two expressways and nearby rail links, according to the companies. Connectivity is set to improve further with a new highway under construction, strengthening links to western Japan.

Antoine Mesnage, head of Asia Pacific at BNPP AM Alts, said the asset has a strong customer and labour catchment and is well placed to attract industrial and logistics occupiers drawn by the region’s improved transport links.

“Following a dynamic year of development and investment across Japan, BNPP AM Alts has further expanded and diversified its Japanese real estate portfolio, focusing on assets driven by long-term social trends that deliver robust returns for our clients,” Mesnage said. “Looking ahead, we aim to continue to invest in asset classes underpinned by strong growth in occupier demand and favourable through-the-cycle trends, as illustrated by our acquisition of a stake in Sachiura DC3.”

Still Big in Japan

BNPP AM Alts’ latest Japan deal comes after the asset manager last week announced its sale of a 49 percent interest in an ESR-built warehouse north of Tokyo to a fund led by Japan’s Dai-ichi Life, with the French firm retaining a same-sized stake in the property.

ESR continues to hold the remaining 2 percent interest in the facility known as ESR Kuki, which is 100 percent leased to customers including e-commerce titan Amazon. A joint venture of ESR and BNPP AM Alts precursor AXA IM Alts had acquired the shed in August 2020 for JPY 39 billion (then $368 million).

In August 2024, AXA entered talks to sell AXA Investment Managers to French financial services giant BNP Paribas for a total consideration of €5.4 billion ($5.8 billion), with the companies completing the deal in July 2025.

The unified BNPP AM Alts manages €300 billion ($357.2 billion) across real estate, infrastructure, alternative credit and private equity strategies, making it Europe’s largest alternative investment platform.