APAC’s largest asset manager ESR Cayman has partnered with PGIM Real Estate’s core strategy in Asia to invest USD 100 million (EUR 86.4 million) to acquire a site in Singapore and develop a 64,490 sq m warehouse.
The site, which has been acquired by POKKA SAPPORO Food & Beverage, will be rebuilt. Construction of the facility will begin this month and is scheduled to be completed during the first quarter of 2024.
The ESR said that POKKA’s logistics arm in Singapore has committed to a 10-year lease of at least 70% of the building area, with the possibility of further extensions.
Jeffrey Shen and Stuart Gibson, co-founders and co-CEOs of ESR, said: “This is an exciting opportunity for ESR as we leverage our unmatched development expertise to support POKKA’s business needs by creating space designed to achieve energy efficiency and increase productivity.
“We are also very pleased to establish our first partnership with PGIM Real Estate to invest together in the robust market in Singapore where we see excellent market fundamentals and a continued strong demand for quality assets.”
Benett Theseira, PGIM Real Estate’s head of Asia Pacific, said: “This is a rare opportunity for PGIM Real Estate to acquire a stake in a first-class asset anchored by a high-quality tenant. Our partner, ESR, has extensive management experience. logistics development and real estate, and through our collaboration we are pleased that this acquisition and redevelopment project will further expand our regional footprint in the logistics sector. “
Jai Mirpuri, Head of New Finance at ESR’s ARA Private Funds, said: “The fully-fledged facility will be built to the highest specifications and standards, with a suite of sustainability features and human-centered design that ESR is known for.
“Committed to delivering outstanding design and performance in environmental sustainability, the facility is designed to achieve BCA Green Mark Platinum certification.”
Rex Macaskill, POKKA Group CEO, said: “We are pleased and look forward to the new facility and office space at 4 Benoi Crescent, which will provide us with the expanded scale, modern specifications and sustainability features to support our growth and expansion in the future. .
To read the latest issue of the latest IPE Real Assets magazine, click here.