ESR Cayman Limited announced a built-to-suit redevelopment project for POKKA Logistics Singapore Pte. Ltd.'s POKKA SAPPORO Food & Beverage Ltd. The project is a redevelopment of POKKA's existing single storey warehouse located at 4 Benoi Crescent which has been in operations for over 30 years. ESR will partner with PGIM Real Estate's Asia core strategy to invest approximately USD 100 million to acquire the leasehold rights of the site from POKKA and develop a circa 64,490 sqm, five-storey, best-in-class warehouse facility to be completed in First Quarter 2024.

POKKA has committed a 10-year lease of a minimum of 70% of the building space, with an option for further extensions. PGIM Real Estate is the real estate investment and financing business of PGIM, the USD 1.5 trillion global investment management business of Prudential Financial Inc. With a capacity of generating circa 2MW rooftop solar power which can be used by its tenants and plugged into the power grid with net metering, the facility will be a carbon-negative building once it becomes operational. ESR is also undertaking a comprehensive embodied carbon footprint tracking exercise as the building targets to become fully carbon-neutral for both scope one and scope two embodied carbon within a few years of operations.

POKKA partnered with CBRE Private Limited in the journey to find the right partner like ESR. With a high growth ambition, Singapore continues to be the main hub for Innovation and R&D. In line with POKKA's Vision to bring Genuine Vitality for Life to all consumers, this is a strategic move as the new space will allow to create an efficient, purpose-built working environment while optimizing productivity and performance. Construction of the facility will commence in April 2022 and is scheduled for completion in First Quarter 2024.