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Strategic LocationsPILLAR 2: PROPERTY PORTFOLIOESR Group LimitedEnvironmental, Social and Governance Report 202458The Group is committed to developing assets in strategic locations, with a sustainability focus on site selection, efficient design, green construction and energy-efficient operations. As APAC%u2019s leading New Economy real asset owner and manager, we have built a significant presence in major consumer markets with established transportation networks. Securing assets in key strategic locations provides our customers with faster speed to market, opportunity to reduce transport costs and related carbon emissions, as well as strengthen their supply chain resilience in the long run. We strive to position all our assets close to urban infill locations in markets where barriers to entry are high, supply is limited and demand is robust. We also adopt a sustainable approach by upgrading existing facilities, redeveloping properties to enhance connectivity with public infrastructure and lowering transport-related emissions. As customer proximity is key, strategic site selection with a preference for infill areas close to infrastructure, customers and transportation is essential to our business success.ESR Fenhu Modern Industry and Service Park is at the heart of the Yangtze River Delta that is strategically located in the Wujiang Fenhu Economic Development Zone, supporting global industrial and supply chains. With a total area of 221,568 sqm, the park caters to manufacturing, e-commerce and retail sectors. It features sustainable measures such as rainwater harvesting, grey water recycling, LED lighting with plans for a rooftop solar power system. ESR Fenhu Park is a comprehensive hub for e-commerce retailers, promoting advanced manufacturing and industrial supply chains. The facility provides ample space, high ceilings and advanced security systems to meet tenant needs.ESR Fenhu Modern Industry and Service ParkIn other parts of the Group, ESR Japan is set to develop the ESR Higashi Ogishima Distribution Centre (%u201cHO DC%u201d) Phase 2 in a prime land located in the Greater Tokyo metropolitan area. The land parcel, spanning ~6 hectares, offers a premium location just 10 km from Haneda Airport, and is in close proximity to the port, central Tokyo, Yokohama and Kawasaki city. Its convenient access to the Bayshore Route makes it an ideal hub for delivery routes across urban areas from Tokyo to greater Yokohama and inland Kanagawa. The planned Higashi Ogishima Distribution Centre 2 (%u201cHO DC 2%u201d) is expected to start construction in 2025 and will have a total area of around 306,000 sqm across 8 storeys, making it only slightly smaller than the inaugural HO DC 1. This development will provide excellent transportation and connectivity for e-commerce, 3PLs, cold storage and other leading businesses in the region.