ESR’s core JV in Japan closes $400m trust asset-backed loan

One of ESR Group Limited’s core joint ventures has completed the refinancing of a JPY 59 billion ($400 million) trust asset-backed loan (trust ABL) in Japan.

SMBC Trust Bank Ltd has provided and structured the trust ABL on an ESR-managed portfolio of five sustainable logistics properties in Japan, which have mostly achieved the highest-tier “Superior” grade in the Comprehensive Assessment System for Built Environment Efficiency (CASBEE).

The Core Joint Venture was formed in 2018 by ESR, with investors AXA IM Alts and Mubadala Investment Company to invest in core stabilized logistics assets in Japan.

The facility meets and is provided on the basis of the “Green ABL Trust” Framework Rating, which SMBC Trust Bank obtained from Japan Credit Rating Agency as the trustee borrower under the ABL structure.