ESR newly acquired 550,000 sqm logistics and industrial portfolio in the YRD region
ESR recently announced the recent acquisition of sizable prime logistics and industrial portfolio in Greater Shanghai. The portfolio consists of 11 completed logistics and industrial properties with gross floor area of over 550,000 sqm. All assets are concentrated in the Yangtze River Delta region, scattering across major cities with high population density and sophisticated transportation network, including Shanghai, Kunshan, Suzhou, Taicang and Hangzhou. This acquisition by far marked the largest en-bloc logistics and industrial transaction in terms of transacted volume and transacted value in YRD region.
Digital technology and traditional industries are further integrating under the context of global pandemic. Many new business models are emerging and developing to adapt with the economic environment. Logistics for one becomes the frontier of such integration. Located in the central logistics hub with the most affluent consumption demand and the most developed E-commerce network, the subject portfolio’s market outlook is very promising. On the market scale, the transaction reflected positive sentiment of investors in logistics assets. It is expected that the demand for logistics asset in the area will continue to be firm with rental and occupancy rate edging up and cap rate remaining stable.