Singapore-based real estate investment platform EZA Hill Property Management, has completed the acquisition of a logistics portfolio from LILV Portfolio, a fund managed by ESR Group valued at US$148 million.

This marks EZA Hill’s maiden acquisition in Indonesia, which it considers an important milestone in its growth in the Southeast Asian region.

“We had envisioned for EZA Hill to be a regional player, and this strategic acquisition marks an important step in that direction,” says Frank Ng Tze Wei, the firm’s co-founder and chief investment officer.

“Expanding into Indonesia, as the largest economy in Southeast Asia and the fourth most populous country in the world, is strategic because it is key to riding the medium-term demographic and economic trends in the region in the next five to 10 years. Furthermore, the portfolio has significant scale, and the acquisition provides a sizeable presence in the Jakarta market.”

EZA Hill acquires three logistics assets in Greater Jakarta, including this two-storey warehouse in Cileungsi, West Java. ( EZA Hill )

The investment comprises three income-generating logistics assets in Greater Jakarta, totalling 137,000 square metres of built-up net lettable area ( NLA ). In addition, two of the properties also have 274,000 square metres of developable NLA, which EZA Hill plans to develop to further grow its portfolio.

The properties are in the strategic industrial and logistics sub-markets of Cikarang, Cibitung and Cileungsi with their strategic locations catering to different stages of the supply chain from production to last-mile delivery.

The asset in Cikarang is located within a manufacturing cluster with strong warehouse demand from factories and assembly, while the assets in Cibitung and Cileungsi are well connected with both benefiting from newly completed toll roads and demand from e-commerce, fast-moving consumer goods, and last-mile delivery tenants.

“We see great potential for growth in the Southeast Asia market. We are building our expertise to operate in these markets and are excited to create value for our investors and take advantage of these opportunities.” says Joe Gagnon, co-head of Rava Partners. Rava Partners, the real assets strategy of Hillhouse, supports EZA Hill.