- February 1, 2021: Vol. 13, Number 2

To read this full article you need to be subscribed to Institutional Real Estate Asia Pacific

Logistics fever: It’s the hottest sector in Asia. What, then, should give investors chills?

by Alex Frew McMillan

“Sheds in big fields” have come a long way. When developer ESR Cayman’s shiny nine-storey warehouse opens in early 2023 outside Tokyo’s Haneda Airport, it will have more than trucks driving up and down its double ramps. It will be the world’s first cargo-drone facility. That means its roof will be dotted with launchpads, vertical take-offs and landings, all directed from a command centre inside the 365,385-square-metre structure (rendering pictured).

That project, the ESR Higashi Ogishima Distribution Centre, will serve greater Tokyo. The company is working with the British passenger-drone developer VRCO on special cargo-specific aircraft. If the proof of concept works, it will be rolled out — or “dropped down” may be more appropriate — to the company’s warehouses across Asia.

Backwater no more

Industrial and logistics space was once the forgotten wasteland of real estate investing, a gritty but generally boring asset class.

Forgot your username or password?

We use cookies and other tracking technologies to personalize your user experience on our site and perform site analytics. By clicking on “I accept”, you consent to our Privacy Policy.