CBRE Investment Management Continues Expansion in Japan With Acquisition of Prime Development Site in Line With Unprecedented Demand for Last-Mile Facilities
Fund-acquired Site Northeast of Tokyo to be Developed into Class A Facility Within Growing Logistics Hub
May 25, 2022
CBRE Investment Management has acquired a 69,045-square-meter parcel of land near Tokyo on behalf of the CBRE Asia Value Partners VI fund. The fund plans to develop the site into a modern logistics facility, which will be known as the Katsushika Logistics Center. The transaction is another key step in CBRE Investment Management’s continued focus on the Japanese logistics market. As with many of the firm’s growing number of direct or fund-driven investments across APAC, CBRE Investment Management will drive the design, development and operation of the asset with the aim of optimizing its sustainability rating, quality and end-user experience.
The development aligns with growing demand from Tokyo’s expanding last mile logistics community. The multi-tenant facility will feature ample parking and loading dock spaces, approximately 18-foot ceiling heights across all floors, air conditioning, and a two-sided ramp allowing transportation access to all stories of the building. The site offers convenient access to several major thoroughfares, including the Metropolitan Expressway, Tokyo Municipal Road 318 (Ring Route 7), and Tokyo Outer Ring Road linking the proposed facility to the key metropolitan districts of the Greater Tokyo area.
“We are delighted to have completed on this acquisition as we continue to broaden our reach across the logistics market in Japan. The strategic location of this site offers a prime opportunity to develop a Class A logistics facility that will appeal to a variety of e-commerce operators who need storage and distribution solutions close to the Tokyo population center. Given the scarcity of such quality assets, we expect this facility to provide long-term value for both the future tenants and our investors as an exclusive last-mile distribution hub,” said Adrian Baker, Chief Investment Officer, APAC Direct Real Estate Strategies, for CBRE Investment Management.
Demand for quality logistics facilities remains high in the Katsushika City area. According to CBRE’s research, the average vacancy rate in the area was at a record low of 1.3% as of third quarter 2021 and is projected to decrease to 1% by the end of 2022. Additionally, Greater Tokyo is the most populous metropolitan area in the world with a population of 39.5 million people as of December 2021. The large population of the area has helped drive demand for logistics spaces given the higher rates of consumer consumption and e-commerce activity amid the global pandemic.
About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $146.8 billion in assets under management* as of March 31, 2022, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.
CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2021 revenue). CBRE has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management 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 assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.