TPG buys majority stake in Japanese logistics assets from ESR

[TOKYO] TPG Asia Real Estate has acquired a majority stake in some logistics assets in Japan from ESR Group.

The assets are ESR Yokohama Sachiura Distribution Centres 1 and 2, in which ESR will retain a minority co-investment stake, TPG and ESR said in a joint statement on Tuesday (Apr 28), without disclosing financial terms. ESR plans to continue to provide asset management services for the facilities.

ESR Sachiura DC1 and DC2 have a combined gross floor area of more than 390,000 square metres and are part of the 33-hectare ESR Yokohama Sachiura Logistics Park.

Japan logistics is a core theme for TPG, and the investment in the facilities highlights the firm’s commitment to the market, Patrick Bracha, managing director of TPG Asia Real Estate, said in the statement.

“The sector continues to offer a compelling environment where active execution – such as leasing up, re-tenanting, and targeted upgrades – can drive attractive, risk adjusted outcomes,” Bracha said.

A group of investors bought ESR last year in a deal valuing the Asian warehouse operator at about US$7 billion. The consortium included Starwood Capital Group, Sixth Street Partners, SSW Partners, Warburg Pincus, Qatar Investment Authority and ESR’s founders. BLOOMBERG