JV to boost investment in South Korean logistics real estate
APG, Canada Pension Plan Investment Board (CPP Investments) and ESR have entered into a strategic agreement to establish a new development joint venture, ESR-KS II, with a total equity allocation of USD 1 billion, representing an investment capacity to deliver as much as USD 2 billion of new development projects. ESR-KS II is a new development joint venture which will invest in and develop an industrial and warehouse logistics portfolio in the Seoul and Busan metropolitan areas in South Korea.
Graeme Torre, head of real estate, APG Asset Management Asia commented: “Following the success of our first joint venture with ESR and CPP Investments in Korean logistics, we are delighted to be able to repeat the partnership." APG, CPP Investments and ESR have agreed to initial investments in the joint venture to the tune of USD 350 million, USD 450 million and USD 200 million, respectively. (mw)