raised focused on New Economy. This includes the newly launched Pan Asia discretionary development vehicle and the Group’s inaugural US$1 billion APAC data centre fund which comprises a development pipeline of eight seed projects with 260 megawatts of capacity. ESR also entered into a US$1 billion joint venture with a leading global institutional investor following the sell down of ESR’s balance sheet assets in China, and in South Korea, ESR also upsized its second development joint venture with APG and Canada Pension Plan Investment Board (“CPP Investments”) by up to US$1 billion for investment in and development of a best-in-class industrial and warehouse logistics portfolio. As of 30 June 2022, the Group had US$17.9 billion (includes ESR Data Centre Fund 1 which was disclosed in a news release dated 25 July 2022) of dry powder capital to deploy in new investments. Record development starts fuel APAC’s largest development workbook ESR has over 42 million sqm of GFA in operation and under development across its portfolio which includes a sizeable landbank of over 4.4 million sqm for future development as of 30 June 2022. Given the record low vacancy rates across the portfolio, the Group had substantially increased its development starts by 109% year-on-year to US$3.5 billion. This was further complemented by US$2.0 billion in development completions, an increase of 51% year-on-year. On the back of that continued progress, the Group has US$12 billion in development work-in-progress, the largest development workbook in APAC. • In Japan, the Group is developing the ESR Yokohama Sachiura Logistics Park in Greater Tokyo. The multiphase development provides approximately 720,000 sqm logistics space over four phases, set to be the largest logistics park (by value) in Japan and one of the largest ever developed (by value) in APAC upon completion. Its second phase, ESR Yokohama Sachiura Distribution Centre 2, commenced construction in June 2021 and is scheduled for completion in January 2023. • The Group is developing a US$1.5 billion multi-phase logistics park, ESR Kawanishi Distribution Centre, on a 505,647 sqm site in Greater Osaka, unveiling one of the largest and most significant urban rezoning developments to accommodate Japan’s ongoing expansion in e-commerce driven New Economy real estate. Note: 5. New Economy assets only. Based on stabilised assets on balance sheet and portfolio assets held in the funds and investment vehicles as of 30 June 2022 • LOGOS and its partners are in the process of developing the US$3 billion Moorebank Logistics Park, Australia’s largest intermodal logistics facility at Moorebank in south-western Sydney, into high quality industrial property and infrastructure including initial approval for 850,000 sqm of warehouse opportunities directly adjacent to key rail intermodal facilities being developed by Qube Holdings Limited with direct linkage to Port Botany and the regional New South Wales and interstate rail networks. • In Singapore, ESR is partnering with PGIM Real Estate in a built-to-suit redevelopment to build a 64,490 sqm logistics facility for POKKA, which has signed a 10-year lease to commit a minimum of 70% of the building space. Key development starts in 1H2022 included the Sime Darby JV (Malaysia), Moorebank Phase II (Australia), Busan New Port (South Korea), ESR Green Link Estate (Australia) and Kunshan Zhonggang (China). Key development completions included ESR Yokohama Sachiura Distribution Centre 1 in Greater Tokyo and Phases 1 and 2 of Opo Logistics Park in Greater Seoul. ESR KendallSquare, ESR’s South Korean platform, completed a total of 520,000 sqm of Class A logistics space in South Korea during the first half of 2022, constituting approximately half of the Group’s completions. The logistics space was fully pre-leased to high quality tenants, including of the largest e-commerce companies in Korea and the logistics arm of a major electronics provider amongst others. Strong operational and robust leasing performance with near zero vacancy rates in mature markets The Group achieved strong leasing progress for 1H2022 with a record of over 2.0 million sqm of space leased. This was primarily driven by e-commerce acceleration and supply chain resilience which continues to generate demand for modern, institutional-grade logistics facilities in key gateway markets. Portfolio occupancy reached an all-time high at 96% (99% ex-Greater China)5, with close to full occupancies in most markets. High occupancy rates are underpinning strong rental growth in many of the markets in which we operate, as the Group achieved an overall positive weighted average portfolio rental reversion of 5.8%5 across the New Economy E S R G R O U P L I M I T E D I N T E R I M R E P O R T 2 0 2 2 11
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