EZA Hill establishes foothold in Jakarta, Indonesia with the acquisition of 3 logistics properties in Cikarang, Cibitung and Cileungsi
4 Dec 20244 min read
Summary
- EZA Hill Property Management has entered the Indonesian market with a US$148 million acquisition of three logistics assets in Cikarang, Cibitung, and Cileungsi. The move strengthens its regional presence and taps into Indonesia’s growing manufacturing, e-commerce, and FMCG sectors.
- The portfolio includes 137,000 sqm of operational warehouse space and 274,000 sqm of developable area, strategically located along key industrial corridors in Greater Jakarta.
- By introducing Grade A, sustainably certified facilities, EZA Hill aims to boost supply chain efficiency, reduce logistics costs, and support Indonesia’s infrastructure and economic growth.
Singapore – EZA Hill Property Management Pte Ltd (“EZA Hill”), a Singapore-based real asset investment firm supported by Rava Partners, the investment arm of Hillhouse Capital, has successfully acquired a logistics portfolio from LILV Portfolio Pte. Ltd., a fund managed by ESR Group. The portfolio, valued at US$148 million, represents the estimated worth of the properties. This acquisition marks EZA Hill’s first entry into Indonesia, highlighting its strategic expansion into Southeast Asia and reinforcing its presence beyond Singapore.In an exclusive email with Value Chain Asia, EZA Hill explained that their decision to invest in Indonesia is driven by the country’s significant growth prospects as Southeast Asia’s largest economy and the fourth most populous nation worldwide. The expanding manufacturing sector, especially in Greater Jakarta, reveals the demand for top-tier logistics and warehousing solutions. This demand is further supported by Indonesia’s young population and the rapid expansion of e-commerce and FMCG industries, both of which require effective last-mile delivery capabilities.Additionally, the Indonesian government’s investments in infrastructure, such as new toll roads, are improving connectivity across key industrial hubs. With properties strategically located in Cikarang, Cibitung, and Cileungsi, EZA Hill is in an ideal position to tap into these trends and cater to the growing need for industrial spaces in the region.
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“We had envisioned for EZA Hill to be a regional player, and this strategic acquisition marks an important step in that direction. 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 sizable presence in the Jakarta market.” Frank Ng Tze Wei, Co-founder and Chief Investment Officer at EZA Hill highlighted.
The investment consists of three high-quality, income-generating logistics assets in Greater Jakarta, Indonesia, with a total built-up Net Lettable Area (NLA) of 137,000 sqm. Additionally, two of the properties offer 274,000 sqm of developable NLA, which EZA Hill plans to develop to further expand the portfolio.Located in the strategic industrial and logistics sub-markets of Cikarang, Cibitung, and Cileungsi, the properties serve different stages of the supply chain, from production to last-mile delivery. The Cikarang asset is situated within a manufacturing cluster, where there is strong demand for warehouse space from factories and assembly operations. The properties in Cibitung and Cileungsi are well-connected, benefiting from newly completed toll roads and attracting tenants from e-commerce, fast-moving consumer goods, and last-mile delivery sectors.When asked in the exclusive how this acquisition would create supply chain opportunities in Indonesia and benefit the economy, EZA Hill responded by emphasizing that the acquisition of these high-spec, Grade A warehouses in strategic locations such as Cikarang and Cileungsi will greatly improve the country’s supply chain infrastructure. These properties are ideal for large-scale distribution centers, enhancing the storage and movement of goods, reducing logistics costs, and accelerating delivery times, especially for sectors like e-commerce, FMCG, and manufacturing. Furthermore, the sustainability features, including Green Mark Platinum and Gold certifications, will establish new standards for logistics infrastructure while supporting Indonesia’s environmental goals.EZA Hill noted that this acquisition will not only strengthen the logistics and industrial sectors but also attract investment, stimulate economic growth, create jobs, and improve supply chain efficiency, all of which align with Indonesia’s broader infrastructure development and global trade aspirations.
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“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.” said Joe Gagnon, Co-Head of Rava Partners.
In the exclusive email, EZA Hill highlighted that their newly acquired warehouses are strategically situated to serve a broad spectrum of industries. These properties are particularly well-suited for sectors like e-commerce, FMCG, last-mile delivery, and manufacturing. With prime locations in key industrial hubs such as Cikarang, the warehouses offer efficient storage solutions, rapid delivery capabilities, and large-scale logistics. This flexibility allows EZA Hill to meet the diverse needs of tenants across critical sectors, ensuring tailored solutions for a range of businesses.
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“EZA Hill’s important investment is part of Hillhouse’s broader commitment to Southeast Asia and the Indonesian market. We are excited to see EZA Hill’s growing influence and leadership as they establish themselves as a key player in advancing the region’s supply chain infrastructure.” says Chengkang Yan, Managing Director at Hillhouse."