Indonesia’s sovereign wealth fund, ESR, Mitsubishi jointly investing in three Indonesian logistics parks
Indonesia Investment Authority (INA), ESR Group and MC Urban Development Indonesia (MCUDI) – a wholly-owned subsidiary of Mitsubishi – have partnered up to invest in three logistics parks developed and managed by ESR in Indonesia.
On Monday (May 29), the trio said they were also exploring options for additional joint investments in the sector.
The three assets are located in Cikarang and Kawarang, Indonesia. The two assets in Cikarang have an expected completion date in May and June 2023, while the property in Karawang is set to commence construction in June 2023.
Stuart Gibson, ESR Group co-founder and co-chief executive and Ridha Wirakusumah, chief executive of INA, have both expressed optimism about the logistics sector in Indonesia.
Gibson said that there is a robust demand for high-quality logistics and industrial spaces in the country from both multinational and domestic customers. This is amid a surging consumer class, the exponential growth of e-commerce and the Indonesian government’s push for electric vehicles.
The partnership is also in line with ESR’s focus on “accelerating our asset-light strategy”, which allows it to recycle capital into attractive opportunities to further build long-term sustainable growth, said ESR’s country co-head of Indonesia Loh Meow Chong.
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“Our strategic partnership will accelerate ESR’s market reach in Indonesia, bringing together the group’s best-in-class expertise in development, asset management and fund management, as well as INA’s and MCUDI’s network of customer ecosystem,” said Gibson.
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