Dutch pension asset manager APG Asset Management and the C$273 billion (US$204 billion) Canada Pension Plan Investment Board have formed a US$500 million joint venture platform with e-Shang Warehousing Services Co, a logistics developer, owner and operator, and e-Shang’s Seoul-based subsidiary, Kendall Square Logistics Properties.

“This investment is a great opportunity for CPPIB to enter the growing and highly-sought-after logistics sector in South Korea,” said Jimmy Phua, the investment board’s managing director and head of real estate investments Asia, in a statement. “Developing logistics facilities in a market like Korea — which is supported by increased trading volume and greater domestic consumption — is an attractive use of capital for a long-term investor like CPPIB.”

The joint venture will develop and own a portfolio of institutional-grade, modern logistics real estate assets across South Korea and initially will be capitalised with equity com