Rava-Backed EZA Hill Buys Logos Indonesia Sheds From ESR Fund

EZA Hill Property Management has acquired a three-asset logistics portfolio in Indonesia valued at $148 million from a fund managed by warehouse specialist ESR, marking the platform’s maiden investment in Southeast Asia’s biggest economy.

The trio of sheds in Greater Jakarta span 137,000 square metres (1.5 million square feet) of built-up net lettable area, EZA Hill said Wednesday in a release. Two of the properties also have 274,000 square metres of developable NLA that EZA Hill will build out to grow the portfolio, said the business backed by Rava Partners, the real assets unit of private equity major Hillhouse.

The assets were previously held by Sydney-based Logos, which was acquired by ESR in 2022 as part of the Hong Kong-listed group’s $5.2 billion takeover of Singapore’s ARA Asset Management. The latest deal follows EZA Hill’s tie-up last year with China’s JD Property to acquire a set of five industrial facilities in Singapore from ESR-Logos REIT for S$350 million ($255 million).

“We had envisioned for EZA Hill to be a regional player, and this strategic acquisition marks an important step in that direction,” said EZA Hill co-founder and chief investment officer Frank Ng, who highlighted the portfolio’s significant scale and presence in the Jakarta market.

Supply Chain Exposure

The properties are located in the West Java submarkets of Cikarang, Cibitung and Cileungsi and cater to supply chain requirements from production to last-mile delivery, according to EZA Hill. JLL’s capital markets team is understood to have advised ESR on the disposal.

Logos Cikarang Logistics Park is located within a manufacturing cluster with warehouse demand from factories and assembly, while the Logos Interchange Logistics Hub in Cibitung and the Logos Cileungsi Distribution Centre are near newly completed toll roads and serve e-commerce, fast-moving consumer goods and last-mile delivery.

With the three Indonesia properties and five Singapore assets in its portfolio, EZA Hill is aiming for a Southeast Asia-wide presence.

“We see great potential for growth in the Southeast Asia market,” said Joe Gagnon, co-head of Rava Partners. “We are building our expertise to operate in these markets and are excited to create value for our investors and take advantage of these opportunities.”

Growing APAC Footprint

The Indonesia portfolio buy comes as Hillhouse is boosting its China logistics operation through a deal announced in October that merges industrial developer Black Kite’s assets and management into Hillhouse’s Gaolu Group warehouse division.

The expanded Gaolu Group has 30 projects spanning a total floor area of 3.1 million square metres under management. The combined entity operates under Gaolu in mainland China, while future offshore business will use the Black Kite brand.

Also in October, Hillhouse and Rava Partners announced a tender offer to buy out the common shares of Japanese developer Samty Holdings in a deal valuing the company at JPY 169 billion ($1.13 billion).

In September, Singapore-based industrial investor Logicap Management, which is backed by Rava Partners, formed a joint venture with Japanese property giant Mitsubishi Estate to develop facilities across key industrial hubs in India.

Note: This article has been updated to show that the portfolio is valued at $148 million, rather than trading for a $148 million price.