Canada Pension Plan Investment Board and ESR Cayman Ltd. has expanded its Korea Income Joint Venture. CPP Investments and ESR will collectively upsize their investment in the vehicle by a further $500 million, with CPP Investments contributing the majority of the capital. The new capital will effectively double the size of the venture to $1 billion in total equity allocation.
The Korea Income JV was established in 2018 to focus on investments in income-producing logistics assets located in major metropolitan areas of South Korea. The portfolio, which is managed by ESR Kendall Square, consisted of 12 institutional-grade modern logistics facilities with an aggregate GFA of 774,666 square meters (tk square feet). Six of the 12 assets were divested to ESR Kendall Square’s Korea Logistics REIT in December 2020.
Jimmy Phua, head of Asia real estate at CPP Investments, said, “Korea is already one of the most developed e-commerce markets in Asia and the pandemic has accele
