CBRE Global Investors Completes Sale of the Mitsubishi Fuso Portfolio in Japan

CBRE Global Investors announces the successful sale completion of the Mitsubishi Fuso Portfolio (the “Portfolio”) in Japan.The Portfolio was acquired in July 2016 for JPY 105.1 billion on behalf of an investor consortium which included CBRE Asia Value Partners IV (the “Fund”), the Firm’s flagship, Pan-Asia, enhanced return investment program. It comprised 169 light industrial properties located across Japan with a combined GFA of circa. 520,000 square meters. These properties are fully leased to Mitsubishi Fuso Truck and Bus Corporation, one of the largest heavy vehicle suppliers in Japan. Given the size of the Portfolio, the acquisition was recognized as the largest real estate transaction in Japan that year.

The Portfolio had been sold progressively with the final disposal successfully taking place earlier this month, notwithstanding the recent market disruptions arising from the COVID-19 pandemic. The sale price of all 169 properties in the Portfolio aggregates to JPY 140.4 billion, representing a 33.6% premium to purchase price. This translates to a blended exit cap rate of 5.2%, or a circa. 200 bps yield compression from the ingoing yield of 7.2%. This outcome has significantly outperformed the team’s underwriting.

Commenting on the transaction, Adrian Baker, Chief Executive Officer and Chief Investment Officer for CBRE Global Investors in Asia Pacific, said: “CBRE Global Investors continues to be focused on Japan logistics and are actively deploying capital to opportunities where we can create defensive, core assets through various value-add and development initiatives.”

“We actively pursued a  strategy involving substantial lease extension and property improvements to enhance the quality of the Portfolio,” added Tetsuya Fujita, Country Head for Japan. “With an extended lease term, best-in-class lease covenants and compelling income yield, the properties were highly sought after by a diverse group of investors seeking quality income producing assets, ranging from high net worth individuals to institutions. It is our pleasure to execute this large, unique Portfolio on behalf of our clients and we anticipate further strong outcomes on the Firm’s investments in Japan in future.”

CBRE Global Investors is an active player in the Japan logistics and industrial sector. Since 2016, it has invested over JPY 215 billion in the sector, acquiring and developing over 1.2 million square meters (in net leasable area) of high-quality logistics space.
 

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About CBRE Global Investors

CBRE Global Investors is a global real assets investment management firm with $108.1 billion in assets under management2 as of March 31, 2020. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.

CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE). It harnesses the research, investment sourcing and other resources of the world’s largest commercial real estate services and investment firm (based on 2019 revenue) for the benefit of its investors. CBRE Group, Inc. has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com

1. Past performance is not indicative of future returns. Returns are quoted as a leveraged cumulative IRR net of all management fees, carried interest, fund-level expenses, and taxes.
2. Assets under management (AUM) refers to the fair market value of real asset-related investments with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real asset-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real asset market, and its calculation of AUM may differ from the calculations of other asset managers."