ESR to upsize development JV in Korea with APG and CPP Investments by up to $1b

ESR Group has plans to upsize its second development joint venture ESR-KS II in Korea with APG and Canada Pension Plan Investment Board (CPP Investments).

ESR-KS II was established by APG, CPP Investments and ESR in June 2020 with $1 billion as the initial equity allocation and upsize options of bringing the total equity investment capacity to as much as $2 billion. ESR-KS II is a development joint venture that invests in and develops a best-in-class industrial and warehouse logistics portfolio in the Seoul and Busan metropolitan areas, the two markets with the largest populations and highest consumer spending in Korea. APG, CPP Investments and ESR agreed in 2020 to initial investments in the joint venture in the amounts of $350 million, $450 million and $200 million, representing respective holdings of 35 percent, 45 percent and 20 percent, respectively, in the joint venture. The joint venture has deployed more than 80 percent of the initial $1 billion equity allocation in l