INA in Strategic Partnership With ESR and MCUDI and Investment Into Logistics Parks in Indonesia

June 20, 2023

Cleary Gottlieb is representing the Indonesia Investment Authority (INA), the sovereign wealth fund of Indonesia, in a strategic partnership with ESR Limited (ESR), the largest real estate manager in APAC, and MC Urban Development Indonesia (MCUDI), a 100% subsidiary of Mitsubishi Corporation engaged in real estate development in Indonesia, and in the partnership’s investment in three strategically located modern logistics parks in Indonesia developed and managed by ESR.

The transaction signifies INA’s first investment in the real estate asset class and MCUDI’s first logistics development in Indonesia. The three assets that the partnership is investing in have strategic locations in Cikarang and Karawang. The Cikarang assets are situated in key industrial zones: Greenland International Industrial Center and Kawasan Industri Terpadu Indonesia China, with expected completion in May and June 2023, respectively. The Karawang asset is located in the Suryacipta Industrial Estate, an expanding industrial area in Jakarta’s Eastern Corridor. Its construction is set to begin in June 2023.

INA is Indonesia’s sovereign wealth fund mandated to increase investment to support the country’s sustainable development and build wealth for its future generations. Established in 2020, INA conducts investment activities and collaborates with leading global and domestic investment institutions in sectors that strengthen Indonesia’s advantages and provide optimal risk-adjusted returns.

MCUDI was established in 2021 as Mitsubishi Corporation’s commitment to the Indonesian real estate market, to further promote economic development and improve quality of life through real estate development by creating values that address societal issues and needs.

ESR is APAC’s largest real asset manager and the third-largest listed real estate investment manager globally. With approximately $150 billion in total assets under management, ESR’s fully integrated development and investment management platform extends across key APAC markets, including China, Japan, South Korea, Australia, Singapore, India, New Zealand, and Southeast Asia, and includes an expanding presence in Europe and the U.S.

Assegaf Hamzah & Partners is representing INA on Indonesian law matters.