APG, the Canada Pension Plan Investment Board and ESR have established a new development joint venture, ESR-KS II, with a total equity allocation of US$1 billion, representing an investment capacity to deliver as much as US$2 billion of new logistics development projects in South Korea.

ESR-KS II will invest in and develop 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 South Korea. APG, CPPIB and ESR have agreed to initial investments of US$350 million, US$450 million and US$200 million, respectively, in the venture. The partners have allocation expansion options that could bring the total equity investment capacity to as much as US$2 billion over time. APG, CPPIB and ESR will hold 35 percent, 45 percent and 20 percent, respectively, of the total issued shares of the joint venture.

The joint venture, which marks APG’s fourth developme