King & Wood Mallesons (KWM) is delighted to advise the ESR Group (“ESR”) through its companies, PT ESR Indonesia Properties One, PT ESR Indonesia Properties Two and PT ESR Indonesia Properties Three (collectively “ESR Companies”) in its strategic partnership with the Indonesia Investment Authority (“INA”), the sovereign wealth fund of Indonesia, and MC Urban Development Indonesia (“MCUDI”).
This strategic partnership is a significant milestone towards long-term collaboration between ESR, its subsidiary LOGOS, and INA. Both parties have expressed enthusiasm to explore the establishment of additional joint mandates for Indonesian development assets and other mutually strategic initiatives.
The partnership will invest in three ESR-developed and managed logistics parks in Indonesia, which include two in Cikarang and one in Karawang with a total gross floor area of 216,864 square metres. This signifies INA’s first venture into the real estate asset class, and marks MCUDI’s diversification from their portfolio of residential projects since Mitsubishi Corporation group first entered the Indonesian real estate market in 2015.
Listed on the Main Board of the Stock Exchange of Hong Kong Limited, ESR is one of Asia Pacific’s largest real asset manager powered by the New Economy and the third largest listed real estate investment manager globally.
Stuart Gibson, ESR Group Co-founder and Co-CEO, said: “This partnership marks ESR’s commitment to Indonesia, a key market in our expansion strategy for the fast-growing Southeast Asia region.” He continues: “ESR’s growing presence in Indonesia and strong emphasis on ESG will also contribute towards sustainable economic growth in Indonesia through job creation and the development of critical infrastructure.”
The KWM team, led by Hong Kong international funds partners Hayden Flinn and Guo Sun Lee, with support from Luke McCarthy, Clarissa Watt, Bobby Fung, Andrew Watson, and Phoenix Chiu acted as ESR Companies’ counsel and was responsible for preparing, negotiating, and finalising all the transaction documents, including three shareholders’ deeds, subscription agreement, disclosure letter, promote agreement and management agreements for each underlying asset.
Guo Sun Lee said: “We are pleased to advise ESR in this milestone strategic partnership, marking the start of their fund and investment management business in Indonesia.”
Hayden Flinn, Co-Chief Executive of KWM Hong Kong, added: “Indonesia is Southeast Asia’s biggest economy. The strategic partnership between ESR, INA and MCUDI introduces an exciting new player in the market for the growth and development of the country’s position as a hub for the region’s e-commerce, logistics and industrial industries.”
As the only international law firm headquartered in Asia, KWM offers unique insight and expertise in the world’s fastest growing economies. KWM delivers outstanding legal services, with over 640 partners and 3000 lawyers in 31 offices around the world.
*Any reference to "Hong Kong" shall be construed as a reference to the "Hong Kong Special Administrative Region of the People's Republic of China".
