Indonesia Investment Authority (INA), asset manager ESR Group, and MC Urban Development Indonesia (MCUDI), a 100% subsidiary of Mitsubishi Corporation engaged in real estate development, have announced a strategic partnership aimed at unlocking the potential of investing in the development of modern warehouse facilities in Indonesia.
The venture is investing in three strategically located modern logistics parks, developed, and managed by ESR and the partners are exploring additional joint investments in the sector.
This venture signifies INA’s first investment in the real estate asset class and MCUDI’s first logistics development in Indonesia, illustrating the appeal of Indonesia’s burgeoning real estate and logistics market and its future growth prospects. The demand for modern warehouse facilities in Indonesia is driven by key sectors, including e-commerce, third-party logistics (3PL), and the automotive industries. These sectors contribute significantly to the market’s growth, each with unique requirements and demands for storage and distribution spaces.
At present, the Indonesian warehouse market, stands at around 29 million square meters, with modern warehouses only accounting for approximately 8% of the total market. Currently, the supply of modern warehouses in Indonesia is 2.7 million square meters, with a an estimated annual growth of 300.000 square meters.
(Source: ESR Group Limited)