Pan-Asia logistics real estate developer and owner ESR, which is backed by private equity firm Warburg Pincus LLC, raised US$575 million for its latest Japanese logistics fund at final close, outpacing its fundraising target of US$500 million.
German insurance company Allianz Group increased its earlier commitment to Redwood Japan Logistics Fund 2 to approximately US$185 million. The fund also attracted investments from the State Oil Fund of the Republic of Azerbaijan; an undisclosed fund managed by Aviva Investors; a Mercer-advised German pension fund; and a Southeast Asian pension fund, which committed US$200 million.
ESR said in a release that Equity International, PGGM, an undisclosed U.S. pension fund and an Asian insurance company also co-invested in projects carried out by Redwood Japan.
Including closed co-investment vehicles, ESR has raised US$1.2 billion for new developments in Japan.
The fund and the related co-investment capital have allowed ESR to capitalize up to US$3 billion worth of developments, roughly 70% of which is already committed to nine projects, the company said, noting that its current Japan pipeline suggests a 100% commitment will be achieved in 2019.
Redwood Japan primarily targets logistics properties in Tokyo, Osaka and Nagoya.
