Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2023 Event Calendar
    • Mingtiandi APAC Residential Forum 2023
    • Mingtiandi Asia Logistics Forum 2023
    • Mingtiandi Hong Kong Focus Forum 2023
    • Mingtiandi APAC Data Centre Forum 2023
    • Mingtiandi Asia Office Strategies Forum 2023
    • Mingtiandi Singapore Focus Forum 2023
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

Ping An Real Estate to Invest Over $300M into e-Shang Redwood’s Japan Projects

2016/07/04 by Michael Cole Leave a Comment

Pierre-Alexandre Humblot

Pierre-Alexandre Humblot of e-Shang Redwood

Leading Chinese institutional investor Ping An Real Estate has committed more than $300 million to invest in warehouse projects in Japan with logistics real estate platform e-Shang Redwood as fund managers continue their love affair with Asia’s distribution centres.

Ping An is making the investment through a programmatic joint venture with e-Shang Redwood that will allow the mainland financial giant to co-invest at a level of up to 50 percent in e-Shang Redwood’s pipeline of projects in Japan.

For Ping An, this is the second time in the last ten months that it has committed major capital to warehouse assets, and for e-Shang Redwood, the investment deal is the latest in a series of investment coups, since the company was formed by a merger of Warburg Pincus-backed e-Shang and Singapore-based Redwood Group in January of this year – a story which was first reported by Mingtiandi.

Logistics Continues to Pull in the Big Money

“Logistics is a stable real estate asset class offering institutional investors predictability and resilience of cash flow,” noted ESR capital officer Pierre-Alexandre Humblot in explaining the interest of Ping An Real Estate and other large investors in pursuing warehouse deals.

Ping An was driven by the same rationale when it committed up to $1 billion to a US joint venture warehouse investment platform with Denver-based Blumberg Investment Partners last October. Competing mainland insurer China Life took a similar tack in November 2015 when it agreed to take a $1 billion stake in Global Logistics Properties’ US logistics portfolio.

Low Vacancy Creating Opportunities in Japanese Warehouses

Aerial Kawagoe Mar 16

ESR opened a new facility in Kawagoe, in Japan’s Saitama prefecture during March

The main Japanese logistics markets of Tokyo, Osaka and Nagoya are currently experiencing low single-digit vacancy levels, according to ESR, and the company sees itself as poised to take advantage of this opportunity.

In March this year the developer and fund manager opened a 39,000 square metre warehouse in Japan’s Chiba prefecture, close to Tokyo, that was already 100 percent leased to Daiwa Co Ltd. At the same time, the company announced the signing of a 5-year lease for 75,000 square metres of warehouse space at its Kawagoe Distribution Center in Saitama prefecture.

Ping An has already committed to four co-investment projects with ESR in Tokyo and Nagoya, according to an ESR statement, and the company is said to have a pipeline of projects to be started in the next 12 to 18 months that is worth over $1 billion.

The investment by Ping An would be the second major new investment in ESR this year, after Dutch pension fund manager PGGM put another $160 million into a China fund managed by the firm in January of this year, just after the e-Shang Redwood merger.

ESR Cashes Up as Competition Increases

For ESR the new cash could be welcome as the growing appeal of Asia’s logistics real estate begins to make the sector look more crowded.

Just last week Carlyle-invested China Logistics Properties announced that it was planning a $433 million Hong Kong IPO this month and Logos Property also expanded its Australia and China-based platform into southeast Asia during June. Anbang Insurance is reported to be a cornerstone investor in that IPO.

ESR could even find the market crowded in Japan with Global Logistic Properties (GLP) and the Canada Pension Plan Investment Board (CPPIB) having announced in February that they would invest another $2 billion in Japan’s warehouse market over the next three years. Australia-based Goodman is also active in the country, having opened a 116,000 square metre first phase of a $1.5 billion logistics project in Chiba Prefecture during April.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Logistics Tagged With: daily-sp, e-Shang Redwood, ESR, highlight, Japan, Logistics, Ping An Real Estate

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Mingtiandi Delivered

MTD TV

ESR, Nuveen, EdgeConneX, JLL See Room For Growth In Japan, Korea Data Centres: MTD TV
Asia Real Estate Takes Aim at Net Zero: MTD TV

More MTD TV Videos>>

People in the News

Brian Kwon Dexus
Dexus Opens Singapore Office, Hires Brian Kwon as Head of Distribution for Asia
Vida Tandean
CBRE IM Appoints Vida Tandean as Head of Indirect Private Real Estate Strategies in Asia
Henry Bott Swire
Asia Real Estate People in the News 2023-01-30
Liu Weiliang Zhenro
Asia Real Estate People in the News 2023-01-23

More Industry Professionals>>

People in the News

Dexus Opens Singapore Office, Hires Brian Kwon as Head of Distribution for Asia

Brian Kwon Dexus

Australian property major Dexus is extending its regional reach with the opening of a new office in Singapore and the … Read More>>

CBRE IM Appoints Vida Tandean as Head of Indirect Private Real Estate Strategies in Asia

Vida Tandean

CBRE Investment Management has bolstered its regional roster with the hiring of Vida Tandean as head of Asia investments … Read More>>

Asia Real Estate People in the News 2023-01-30

Henry Bott Swire

One of Hong Kong’s best known conglomerates leads this week’s set of personnel updates on Mingtiandi as Hong Kong’s John … Read More>>

Asia Real Estate People in the News 2023-01-23

Liu Weiliang Zhenro

An ailing mainland developer leads this week’s set of personnel moves from around Asia, as a new chairman takes over at … Read More>>

More Industry Professionals>>

Latest Stories

Laurent Jacquemin AXA
AXA IM ALTS Picks Up 33 Japanese Apartment Buildings for $459M
Tim Blackburn Swire
Swire Properties Buys 40% Stake in Bangkok Residential Site From HKRI for $73M
Guoco Midtown Office Project Opens Doors to Tenants in Singapore 

Sponsored Features

How Data Leadership Can Prepare Real Estate Companies for Big Data and AI in 2023
OpenSpace Capture
OpenSpace Capture Provides On-the-Ground Eyes at US Government Building Projects
Malls and Megaprojects from Hong Kong to Beijing Triumph at PropertyGuru Awards Show

More Sponsored Features>>

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2023 China Advertising Media Ltd (Samoa). All rights reserved.

  • This field is for validation purposes and should be left unchanged.