The Indonesia Investment Authority (INA), ESR Group, and MC Urban Development Indonesia (MCUDI), a subsidiary of Mitsubishi Corporation, have announced a strategic partnership focused on developing modern warehouse facilities in Indonesia.
The partners have committed to investments in three logistics parks situated in Cikarang and Karawang, marking a significant stride towards long-term collaboration.
This partnership represents INA’s first foray into the real estate asset class and MCUDI’s debut in logistics development in Indonesia.
The growing demand for modern warehouse facilities in the region, driven by the e-commerce, third-party logistics (3PL), and the automotive industries, underlines the promising future of Indonesia’s real estate and logistics market.
“With only 8% of the total warehouse market currently modern, this venture intends to invest in modern warehouse assets and secure a considerable share of this expanding market,” stated Ridha Wirakusumah, CEO of INA.
The partnership’s investments are in key industrial zones, offering excellent connectivity. The Cikarang assets are expected to be completed in mid-2023, while construction of the Karawang asset is set to begin in June 2023.
In addition to the current investments, INA, ESR, and MCUDI are exploring the establishment of further joint initiatives for Indonesian development assets.
Given the dynamic nature of Indonesia, the partners estimate that their collaborations could generate over $1 billion of modern logistics warehouses over the next five years.
The collaboration is also set to leverage the strategic expertise of ESR and its subsidiary LOGOS, along with other partners, to create innovative and environmentally conscious real estate solutions.
Stuart Gibson, ESR Group Co-founder and Co-CEO, emphasized the partnership’s commitment to Indonesia, a key market in ESR’s expansion strategy for the fast-growing Southeast Asia region.
Loh Meow Chong, ESR’s Country Co-Head of Indonesia, affirmed the partnership’s potential to expand their portfolio of modern logistics and industrial assets in Indonesia, given the expected growth in e-commerce sales.
Kenji Ono, MCUDI’s President Director, expressed gratitude for the opportunity to collaborate with INA and ESR, marking MCUDI’s diversification from residential projects to logistics development.
BusinessNewsAsia