ESR Group Sells Majority Stake in Yokohama Sachiura Logistics Park to TPG Asia Real Estate
ESR Group has expanded its investment partnership with TPG Asia Real Estate through the majority sale of ESR Yokohama Sachiura Distribution Centres 1 and 2 (ESR Sachiura DC1 and DC2) in Japan, the Asia-Pacific-focused real asset owner and manager announced April 28, 2026. ESR will retain a minority co-investment stake and continue providing asset management services for the facilities.
Transaction Details and Partnership Background
The transaction marks the second time ESR Group and TPG Asia Real Estate have partnered on a Japan logistics asset repositioning. The two firms previously collaborated on an Osaka logistics asset that was exited in 2021. Financial terms of the current transaction were not disclosed.
ESR Sachiura DC1 and DC2 are modern, four-storey, double-ramp logistics facilities with a combined gross floor area of over 390,000 square metres. The assets are part of the 33-hectare ESR Yokohama Sachiura Logistics Park, which ESR describes as its largest modern logistics development in the Tokyo market to date.
Stuart Gibson, Co-founder and Co-CEO of ESR, said the firm was pleased to have delivered a strong exit for its development investors. "We are pleased to have delivered a strong exit for our development investors and to have secured a high-quality, established capital partner for the next phase of value creation with clear leasing upside ahead," Gibson said. "ESR Sachiura DC1 and DC2 are part of the largest modern logistics park we have developed in the Tokyo market to date and represent a rare customer proposition, given the limited availability in the Kanagawa Bay market and dwindling new supply. This milestone follows our successful cooperation with TPG Asia Real Estate on an Osaka asset exited in 2021."
Patrick Bracha, Managing Director at TPG Asia Real Estate, described the investment as a landmark transaction aligned with the firm's long-term strategy. "We welcome the completion of this landmark investment in Japan's logistics sector, which is a core investment theme for us and underscores our long-term commitment to the market," Bracha said. "The sector continues to offer a compelling environment where active execution — such as leasing up, re-tenanting, and targeted upgrades — can drive attractive, risk-adjusted outcomes. ESR is a valued partner in this strategy, and we look forward to working together to actively execute the business plan for ESR Sachiura DC1 and DC2."
Strategic Location and Sustainability Credentials
Strategically located in Yokohama City within Greater Tokyo, ESR Sachiura DC1 and DC2 incorporate a range of sustainability features that lead industry standards for logistics real estate in Japan. Both facilities have obtained recognized sustainability certifications, including CASBEE Class S accreditation — the top-tier energy efficiency rating in Japan — and a 5-star rating under the BELS (Building Energy-efficiency Labelling System) framework.
The transaction leverages ESR's in-market capabilities, including a 12-member leasing team with 14 years of experience operating in Japan. TPG Asia Real Estate's involvement brings a value-added approach and the ability to fund large transactions across both equity and debt, according to the announcement.
Value-Add Strategy and Market Context
The deal follows a value-add investment strategy, with both parties citing leasing upside as a key driver of future returns. ESR and TPG Asia Real Estate indicated that active execution — including leasing up, re-tenanting, and targeted property upgrades — will form the core of the business plan going forward.
The announcement follows an earlier separate transaction involving ESR Yokohama Sachiura Distribution Centre 3, which ESR said underscores strong investor demand for high-quality logistics assets and the strategic importance of the Sachiura logistics park to the Greater Tokyo market. The Kanagawa Bay submarket, where the park is situated, has seen limited new supply, a dynamic that both firms referenced as supporting the investment thesis.
ESR's real estate development platform spans the Asia-Pacific region, covering markets that represent approximately 95 percent of regional GDP, according to the firm's investor materials. The Sachiura transaction represents a capital recycling event for ESR, allowing the firm to deliver returns to development investors while maintaining ongoing exposure to the asset through its retained minority stake and asset management role.
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