Asset manager ESR Group has commenced construction of its Kawanishi distribution and technological park in Japan.

The facility is said to be Japan’s largest distribution hub development, comprising a land area of roughly 505,281m² and an overall gross floor area (GFA) of approximately 750,000m².

It is expected to accommodate tenants from various industries such as from the logistics, e-commerce, transportation, and retail sectors.

The facility will have a rise in manufacturing operations driven by reshoring from Asia to Japan.

The logistics park consists of four buildings, featuring Phase I, which will see the completion of the first pair of six-storey seismic-isolated amenities with a GFA of nearly 250,000m².

A rezoning process is underway for Phase II, which will commence in 2025 and allow for an additional 500,000m² of distribution space.

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The logistics park is expected to be equipped to accept a wide range of goods, from machinery to food products, to help meet the demands of general transportation, storage, cross-docking, third-party logistics, mail order fulfilment, automated warehousing, and manufacturing in the country.

ESR co-founder and co-CEO Stuart Gibson said: “Making best use of our experience and expertise, we have started construction on the largest and most significant rezoning projects in Japan, strategically repurposing a prime site for logistics use in close cooperation with the local government.

“We are delighted to invest in and drive Japan’s hub status in global e-commerce and supply chain flows amid an undersupply of modern large-scale logistics facilities.

“As part of ESR’s continued expansion of institution-grade New Economy real estate, our ambition is to develop best-in-class developments like the ESR Kawanishi Distribution and Techno Park project to bring long-term benefits to the community and residents.”