ESR Cayman Limited (ESR), Manulife and PGGM announced July 6 that a new core joint venture between ESR and Manulife has completed the acquisition of four institutional-grade logistics properties from Redwood China Logistics Fund (RCLF) for approximately 1.7 billion yuan (US$243 million).
RCLF is a limited partnership development joint venture between ESR and PGGM. PGGM is one of the Netherland's largest pension fund service providers and is an existing and long-standing capital partner of ESR.
The acquisition involves a portfolio of four grade 'A' core logistics assets with over two million square feet of net rentable area. Located in Guangzhou, Kunshan, Wuxi and Dongguan, each building is strategically positioned with convenient access to key arterial expressways and local airports. As of June 30 the buildings are all fully leased to a diverse mix of high quality tenants.
This transaction marks Manulife's first standalone industrial investment in China, demonstrating its commitment to growing its real estate exposure in the Asia-Pacific region. The acquisition brings Manulife's real estate portfolio in the region to 4.9 million square feet.
A market leader in modern logistics real estate in China and the Asia Pacific region, ESR has built a strong portfolio and development pipeline of logistics properties across China. In China, the total GFA of the portfolio assets held on the group's balance sheet and in the funds and investment vehicles it manages comprised 6.9 million square meters, and the total AUM reached over US$4.8 billion, as of December 31 2019.