ESR Cayman Limited announced its latest multi-phase logistics development in Greater Osaka, building ESR Kawanishi Distribution Centre on a 505,647 sqm (152,958 tsubo) prime site in Japan'sKawanishi City to further expand its strategic network of institutional-grade New Economy real estate in the metropolitan area. ESR Kawanishi DC is a two-phase development located in the eastern Hyogo Prefecture of Kawanishi City, sitting at the core of the Greater Osaka Inland logistics market. Phase 1 will consist of two six-storey multi-tenant facilities with GFA of 99,051 sqm (29,963 tsubo) and 98,746 sqm (29,871 tsubo), respectively.

The facilities, which are designed to attain CASBEE A rating and the higher standards of building specifications, will feature a host of sustainability and energy-saving elements to minimise environmental footprints. Phase 1 is expected to break ground in July 2023 and scheduled for completion in December 2024, while the two buildings of Phase 2 will commence construction from 2025 onwards. The logistics sector in Greater Osaka continues to demonstrate its strength, propelled by key forces including the continued rise of e-commerce, the automation of logistics operations and transformation of the supply chain ecosystem.

In the second half of 2021, the Greater Osaka area recorded the lowest vacancy since 2017 at mid-1.0% and average rent rose by 0.8% year-on-year, led by rent growth in Osaka Inland by 2.3% year-on-year. ESR has cemented its position as a clear leader in this highly strategic market of Greater Osaka. The Group's 388,570 sqm ESR Amagasaki Distribution Centre, which is primely situated in the Greater Osaka Metropolitan area, boasts a GAV in excess of USD 1.0 billion and is now 98% leased to a diversified rent roll of 16 tenants including leading e-commerce companies since its completion in June 2020.

This facility represented one of the seed assets of the ESR Japan Income Fund which completed its first close in October 2021 and was endowed with USD 750 million of initial equity commitments from some of the world's most prominent institutional investors. A leader and pioneer in Japan's New Economy real estate, ESR has an unrivalled track record in urban planning and rezoning projects. The Group has also developed some of the most advanced facilities which set new benchmarks for modern logistics infrastructure while protecting and celebrating the heritage of the local communities and surrounding environment.

This rezoning project in Kawanishi City is the latest in a long line of change of land use developments which ESR has undertaken over the past decade. ESR places great emphasis on urban planning and has created a dedicated team that specialises in land rezoning.