Hong Kong real estate manager ESR Group and local property developer Chinachem Group are forming a joint venture to develop a cold storage and logistics facility in the city to cater to growing demand.
The project involves developing a seven-storey facility with 138,000 square metres of gross floor area, and is expected to be completed in 2027, the companies say in a joint statement on August 16.
They did not provide any financial details or the shareholding structure of the joint venture.
According to the companies, demand for logistics space in Hong Kong is high, with the vacancy rate in the sector at an eight-year low of 1.4% in the second quarter of 2022.
“In this new economy driven by the rising e-commerce industry and growing demand for imported food items and pharmaceuticals, our project is poised to fulfil the growing demand for large-scale, cutting-edge logistics and cold storage space in Hong Kong,” Jeffrey Shen and Stuart Gibson, co-founders and co-chief executive officers of ESR, say in the statement.
ESR has around US$140.2 billion of assets under management across Asia Pacific, while Chinachem has a portfolio residential, commercial, retail and industrial properties for sale and investment in Hong Kong.