ESR and Mitsubishi unit to develop Indonesia logistics, industrial hubs valued over US$80 mil
The institutional-grade assets, with a total expected possession value of greater than US$ 80 million ($ 103.3 million), will certainly be situated in Karawang and Cikarang– two well-known and in-demand industrial submarkets in Indonesia, the firms stated in a joint announcement on July 7.
Two Grade A logistics and industrial facilities in Greater Jakarta will be created under a collaboration in between real asset owner and supervisor ESR and Mitsubishi’s wholly-owned subsidiary MC Urban Development Indonesia (MCUDI).
The site has direct access to the Jakarta-Cikanpek interstate, with improved future connectivity by means of the Jakarta-Cikampek II south toll road.
Both properties will be developed and built by Japanese service providers, including modern fire safety and security, seismic-compliant design, and sustainable features. The advancements will additionally adopt a “human-centric layout strategy” to enhance energy performance and support worker health, the statement added.
The other upcoming home is Cikarang Logistics and Industrial Center, within the Jababeka industrial estate. A two-block, single-storey center will certainly climb on a 68,000 sq m freehold website and supply more than 48,000 sq m of leasable area.
The Cikarang residential property will certainly deal with international logistics, ecommerce and production customers, sustained by transportation affiliations across the Jakarta-Cikampek toll road network, according to the announcement.
Developed on a freehold website spanning regarding 100,000 sq m (1.08 million sq ft) in acreage, the task in Karawang will certainly deliver near 63,000 sq m of leasable area. It aims to target growing demand from multinational third-party logistics and manufacturing consumers.
MCUDI’s inbound head of state supervisor, Hideaki Nakajima, claimed the two firms are increasing their cooperation and investment in warehousing projects in Indonesia “by integrating our local abilities with our accumulated knowledge and network in Japan, alongside ESR’s fund monitoring and development knowledge”.
Karawang Logistics and Industrial Hub will certainly consist of a three-block, single-storey facility within the Suryacipta industrial estate.
Mirpuri of ESR kept in mind that the companions are scaling institutional-grade logistics and industrial developments in calculated Greater Jakarta locations where supply stays “structurally constrained”.
The most recent joint growth arrangement is the 2nd phase of ESR and MCUDI’s critical collaboration in Indonesia. They had previously delivered and leased out 3 jobs: Karawang Logistics Park 1, and Cikarang Logistics Parks 1 and 2.
Building has started, with completion targeted for the 3rd quarter of 2027.
ESR head of Southeast Asia, Jai Mirpuri, stated: “This investment reflects ESR’s asset-light approach and concentrate on Asia Pacific markets with clear demand exposure and solid partner alignment.”
