ESR and MCUDI Expand Logistics Facility Partnership in Indonesia
ESR, an Asia-Pacific focused real asset owner and manager, together with PT MC Urban Development Indonesia (MCUDI), a subsidiary of Mitsubishi Corporation, has signed a joint development agreement to build two modern, institutional-standard warehouses in Greater Jakarta. The partnership will leverage each company’s strengths to maximise asset value through the joint development. With a total asset value exceeding US$80 million, the partnership will develop two Grade A logistics and industrial facilities: Karawang Logistics and Industrial Hub and Cikarang Logistics and Industrial Hub, located in two of Indonesia’s most developed and sought-after industrial sub-markets. Construction on both assets has commenced, with completion targeted for the third quarter of 2027. This new development marks the second phase of the strategic partnership between ESR and MCUDI in Indonesia, following the successful development of three similar projects: Karawang Logistics Park 1, Cikarang Logistics Park 1, and Cikarang Logistics Park 2, which demonstrated strong market demand. Both latest assets are designed and built by Japanese contractors to ESR and MCUDI standards, incorporating modern fire safety systems, structural designs meeting seismic resilience standards, and sustainability features such as LED lighting, FRP skylights, and structural readiness for solar panel installation. Beyond technical excellence, the facilities are designed with a human-centric approach that promotes energy efficiency and worker well-being. Jai Mirpuri, Head of Southeast Asia at ESR, stated that this investment reflects ESR’s asset-light strategy and focus on Asia-Pacific markets with clear demand visibility and strong partner alignment. Following the success of previous collaborations, the companies are expanding institutional-standard logistics and industrial asset development in strategic Greater Jakarta locations where supply remains limited. MCUDI’s incoming President Director, Hideaki Nakajima, added that the company has been looking forward to expanding collaboration and investment with ESR in Indonesia’s logistics and industrial warehousing projects by combining local capabilities, accumulated knowledge, and networks in Japan with ESR’s expertise in fund management and development. Karawang Logistics and Industrial Hub is a single-storey Grade A warehousing facility comprising three blocks within the Suryacipta City of Industry industrial estate. Developed on 100,000 square metres of land with a floor area of 63,000 square metres, it is designed to meet rising demand from modern warehousing tenants in the logistics and manufacturing sectors. The location has direct access to the Jakarta-Cikampek Toll Road and will also be connected to the future Jakarta-Cikampek II South Corridor toll road. Cikarang Logistics and Industrial Hub is a single-storey Grade A warehousing facility comprising two blocks within the Jababeka II Industrial Estate. Developed on 68,000 square metres of land with a floor area of 48,000 square metres, it is aimed at multinational customers in the logistics, e-commerce, and manufacturing sectors. The location has direct access to the Jakarta-Cikampek Toll Road.