Eza Hill expands into Indonesia with deals for three logistics hubs

The Singapore real asset business, backed by Hillhouse, has spent around $148m on the hubs from a ESR Group fund, as it eyes SEA expansion.

November 28, 2024

Eza Hill Property Management, a Singapore-based real asset business backed by Rava Partners, the real assets strategy of Hillhouse, has acquired three Indonesian logistics hubs from LILV Portfolio, a fund managed by ESR Group for $148 million.

The investment comprises a portfolio of three logistics assets in Greater Jakarta totaling 137,000 sqm of built-up net lettable area (NLA). In addition, two of the properties also have 274,000 sqm of developable NLA which Eza Hill could develop to further grow the portfolio.

The properties are in the industrial and logistics sub-markets of Cikarang, Cibitung and Cileungsi which cater 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 connected via toll roads and demand from e-commerce, fast moving consumer goods and last-mile delivery tenants, according to a media release. 

The deals are Eza Hill’s maiden acquisition in Indonesia as it looks to grow beyond Singapore into the Southeast Asia (SEA) region.

Frank Ng Tze Wei, co-founder and chief investment officer at Eza Hill, said, “We had envisioned for Eza Hill to be a regional player, and this strategic acquisition marks an important step in that direction.”

Wei continued: “Expanding into Indonesia, as the largest economy in SEA 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.” 

Joe Gagnon, co-head of Rava Partners, said: “We see great potential for growth in the SEA 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.”

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