ESR has sold a majority stake in ESR Yokohama Sachiura Distribution Centres 1 and 2 in Japan to TPG Asia Real Estate, while retaining a minority co-investment stake in the logistics facilities.
The transaction represents the second partnership between ESR and TPG Asia Real Estate focused on repositioning logistics assets in Japan. The two distribution centres are located within the 33-hectare ESR Yokohama Sachiura Logistics Park, a large-scale logistics development in the Tokyo metropolitan area.
The facilities form part of what ESR described as its largest modern logistics park developed in the Tokyo market to date. The site is positioned in the Kanagawa Bay area, where availability of large, modern logistics space is limited and new supply has been gradually declining, creating demand for existing assets.
ESR co-founder and co-CEO Stuart Gibson said the Yokohama Sachiura assets offer a distinctive proposition for customers due to their scale and location within an established logistics hub. He added that the transaction follows the companies’ previous collaboration involving an Osaka logistics asset that was exited in 2021.
TPG Asia Real Estate managing director Patrick Bracha said the investment highlights the firm’s continued focus on Japan’s logistics sector and reflects its long-term commitment to the market. He noted that logistics real estate in Japan continues to provide opportunities for value creation through active asset management strategies.
These strategies may include leasing initiatives, re-tenanting existing spaces and targeted facility upgrades designed to improve occupancy and operational performance. Such measures are commonly used to enhance asset value while aligning properties with evolving tenant requirements.
The Yokohama Sachiura Logistics Park, where the two distribution centres are located, is designed to support modern supply chain operations and distribution activities. Its scale and proximity to major transport routes position it to serve regional and metropolitan logistics demand.
The latest transaction underscores continued investor interest in logistics real estate assets, particularly in markets with limited new development and stable demand for warehouse and distribution space. By retaining a minority stake, ESR remains involved in the assets while partnering with TPG Asia Real Estate on future value enhancement initiatives.
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