Hong Kong-based e-Shang Redwood Group (ESR), a Warburg Pincus-backed pan-Asia logistics real estate platform, has completed a new fund with an initial capacity to capitalise up to 200 billion yen ($1.8 billion) of real estate projects.

ESR Japan Logistics Fund 3 (RJLF3) will focus on the development of large-scale, state-of-the-art logistics facilities in the largest metropolitan areas of Japan.

The fund will capitalise real estate projects from the ESR development pipeline in Greater Tokyo, Osaka and Nagoya.

RJLF3 is securing initial equity of $630 million from two partners, which have a commitment expansion option that would bring the total investment capacity to up to $4.8 billion over time.