Ares Raises $4 Billion for Japan Logistics Fund
Synopsis
Ares Management has raised $4 billion for a new Japan logistics fund, which will invest in modern logistics facilities in Greater Tokyo, Greater Osaka and Nagoya.
Key Highlights
- Ares Management holds a $4 billion fist Japan logistics development fund
- The fund constitutes Ares Real Estate’s largest closed-end institutional fundraising to date.
- Primarily focuses on modern logistics facilities in Tokyo, Osaka and Nagoya.
- The fund has a total investment capacity of $11 billion and is already committed to additional projects with an approximate value of $3 billion.
Ares Raises $4 Billion
Ares Management Secretary Plant on Fifth Japan Logistics Development Fund Ares Management said it has closed 612 billion yen, or about $4 billion, for its fifth Japan logistics development fund. Japan Logistics Development Partners V LP was oversubscribed. That represents nearly a 50 per cent increase on the last fund launched in 2021.
Focus on Logistics Facilities
The fund will primarily target contemporary logistics facilities located in top Japanese markets, including Greater Tokyo; the Greater Osaka and Nagoya regions.
Modern logistics space demand is expanding in Japan. CBRE also expects rents for large logistics facilities around the four biggest metropolitan areas in the country to grow again late next year, before moderating growth between 2024 and 2027.
Strong Investor Support
Investors included pension funds, sovereign wealth funds, insurers, financial institutions and other large investors across North America, Asia-Pacific Europe and the Middle East for the fund.
The fund is backed on the big side with a 150 billion yen investment from Canada Pension Plan Investment Board, which has been involved in every single Japan logistics fund since 2011.
The firm owns more than 25 logistics buildings across Japan, China and India and has an additional 61 properties in its fund GEP IV, which generates cashflow from logistics rents.
$11 Billion Investment Capacity
The total investment capacity of the fund is 1.7 trillion yen (around $11 billion), according to Ares. It has already pledged projects worth approximately 450 billion yen (about $3 billion) in total investment value.
The properties will be developed and operated by Marq Logistics, Ares’ global logistics real estate platform. Marq owned approximately 120 million square feet of logistics properties in Japan and +655 million square feet globally as of June 30. Ares Management has $671 billion as of June 30 in assets under management. Ares Real Estate, 4th, $121 billion.
Source: Reuters
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