HONG KONG SAR – Media OutReach – September 27, 2023 – ESR Group Limited (“ESR”, SEHK Stock Code: 1821), APAC’s largest real estate asset manager powered by the new economy, in partnership with Chinachem Group (” Chinachem), a leading property developer in Hong Kong, today broke ground on the development of a premier logistics and cold storage facility in Kwai Chung, the first of its kind and the largest to be built in Hong Kong over the last 20 years.
ESR Group Limited, in partnership with Chinachem Group, today held a groundbreaking ceremony to kick off the development of a state-of-the-art logistics and cold storage facility in Kwai Chung. Distinguished guests of honor at the inauguration ceremony include Lam Sai Hung (center), Secretary of Transport and Logistics; Jeffrey Shen (third from right), co-founder and co-CEO of ESR Group; and Donald Choi (third from left), executive director and CEO of Chinachem Group. This marks the start of Hong Kong’s largest cold storage project in the past 20 years. Second and first from left are Chinachem Group Executive Director and Chief Financial Officer Ricky Tsang and General Manager Corporate Development Damien Wu, while second and first from right are Chang Rui Hua, general manager of business management and investments of ESR Hong Kong; and Allan Wang, Senior Director of Group Treasury, ESR Group.
The inauguration ceremony was attended by Lam Sai Hung, Secretary of Transport and Logistics of the HKSAR Government; in the presence of Jeffrey Shen, co-founder and co-CEO of ESR Group; Chang Rui Hua, Managing Director, Business Management and Investment, ESR Hong Kong; and Allan Wang, Senior Director of Group Treasury, ESR Group; as well as senior executives of Chinachem Group, including Donald Choi, Executive Director and CEO; Ricky Tsang, executive director and chief financial officer; Damien Wu, Managing Director, Corporate Development.
Scheduled to be completed in 2027 (with a new 50-year lease expiring in 2072), the Kwai Chung Cold Storage Logistics Center will play a major role in pioneering the future of logistics in Hong Kong and consolidating the city’s leadership as a regional logistics hub. Chinachem and ESR bring their combined expertise in project management and development to ensure the construction of a building of the highest quality. Additionally, ESR brings its extensive experience in sustainability, so the Kwai Chung Cold Storage Logistics Center will meet the highest green building standards. To promote green transport, Chinachem Group, ESR and CLPe will explore electric vehicle charging as a service to meet future demand for electric commercial vehicles. Additionally, tenants of the new facility will be able to maximize the use of leased space, including the ability to expand up to three levels of racking space. ESR, which will be the asset manager of the Kwai Chung cold storage logistics center, has signed a letter of intent with one of Hong Kong’s largest 3PL companies and discussions with other potential tenants are ongoing .
Lam Sai Hung, Secretary of Transport and Logistics, said: “The government attaches great importance to the development of the logistics sector and has spared no effort to provide a favorable business environment for trade. One of the government’s policy directions is to promote a more efficient use of logistics land to support the modernization and transformation of the logistics sector towards green and smart solutions, particularly in the management of high-value products and the chain. cold. The development of new, modern, multi-storey logistics facilities by industry could certainly complement the government’s efforts to drive this policy direction.
Jeffrey Shen and Stuart Gibson, co-founders and co-CEOs of ESR Group, said: “We are proud to bring ESR’s industry-leading investment, development and management expertise to Hong Kong. assets for modern logistics facilities as well as the highest standards of sustainable development. Together with our partner Chinachem Group, we are confident that this new development will meet the growing demand for large-scale, cutting-edge logistics space while enabling Hong Kong to strengthen its position as the world’s leading logistics hub. With the property’s state-of-the-art facilities, its strategic location also helps unlock the full potential value of the Kwai Chung neighborhood and support the long-term development of the region by promoting employment opportunities and economic growth.
Chang Rui Hua, General Manager of Business Management and Investments of ESR Hong Kong, said: “ESR’s facility in Kwai Chung will set a new benchmark in the industry, not only with its scale and cutting-edge features such as automation, but also with a range of green energy. features for tenants so they can provide more sustainable supply chain solutions.
Speaking at the groundbreaking ceremony, Donald Choi, Executive Director and CEO of Chinachem Group, said: “We are delighted to partner with ESR for the Kwai Chung Cold Storage Logistics Centre, marking our first investment important in the logistics sector. enhance Hong Kong’s regional status as a logistics hub and accelerate its economic integration into the Greater Bay Area for its continued prosperity. Through the adoption of prefabricated building elements and integrated multi-trade mechanical, electrical and plumbing (MiMEP) modules, we actively reduce carbon emissions, demonstrating our commitment to protecting the environment. This collaboration advances our shared ESG priorities, pioneering the sustainable evolution of Hong Kong’s logistics sector while aligning with Chinachem Group’s commitment to balancing people, prosperity and planet. With ESR, our ambition is to shape the future of Hong Kong’s logistics sector by creating a legacy of sustainable development and prosperity. The cold storage facility marks another important step in Chinachem’s business diversification strategy.
Once completed, the Kwai Chung Cold Storage Logistics Center will embody industry best practices in digital technologies and automation, operational flexibility, energy management and modern design to enable tenants to achieve greater efficiency and lower environmental impact.
Sustainable and green features
The cold storage will be built to the highest green building standards, aiming to achieve LEED Core and Shell Platinum and BEAM Plus New Building Platinum certifications. State-of-the-art green and sustainable building features have been integrated into the building design, including a rainwater harvesting irrigation system, over 300 electric vehicle (EV) charging points, photovoltaic panels ( PV) and other renewable energy solutions. In addition, 30% of the site’s surface area is reserved for greenery.
Modern logistics features
To maximize the permitted gross floor area of 138,000 square meters, the cold storage will be a seven-story facility with two basement levels for parking. Approval was obtained to add eight meters of height to the building, providing high headroom for tenants. The facility also provides ramp access to all levels and automated logistics features including dock levelers, dock shelters and overhead doors. Other automated installations could be implemented by future tenants.
Strategic location of the site
Strategically located at the junction of Mei Ching Road and Container Port Road South in Kwai Chung, with direct connection from Tsing Ma Bridge and Stonecutters Bridge, the facility provides easy one-hour access to established road networks to Hong Kong’s central business district, the international airport and the border with mainland China.
Both ESR and Chinachem are confident in the promising prospects of the logistics assets and believe that the high-impact infrastructure project will make a vital contribution to Hong Kong’s economic growth. As accessibility between Greater Bay Area cities improves, the Hong Kong market will open up to some 85 million people, while the accelerating growth of e-commerce, particularly the growing demand for food and pharmaceutical products, will further drive the market need for modern logistics space. .
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