Singapore-based global warehouse operator GLP, which is owned by Chinese private equity firm Hillhouse Capital Management, will set up an investment fund totaling around 625 billion yen (US$5.6 billion) for the development of logistics facilities in Japan with a dozen properties planned in 2019 and beyond, a Nikkei report said.
Asia's top logistics facility provider will launch the fund in 2019 the report added, and it will invest in properties mainly in the greater Tokyo and Osaka areas. Among them is one of Japan's
largest logistics facilities planned in Sagamihara, Kanagawa Prefecture - scheduled for completion in 2022.
Nikkei said property development offers hefty returns in exchange for its inherent risks and demand is growing for an investment fund like this one.
Five or six institutional investors, including the Canada Pension Plan Investment Board and government-backed funds from Asia and the Middle East, are expected to participate.
E-commerce is key investment driver
GLP, formerly known as Global Logistic Properties, previously invested 550 billion yen in Japanese facilities through two funds set up with the Canadian public pension fund manager.
Logistics facilities in Japan are considered a hot spot, the Nikkei report noted, because e-commerce has much room to grow in the country. Online sales accounted for less than 6% of overall goods sales here last year. Cutting-edge facilities that can handle speedy shipments of various goods are in high demand.
GLP's Japanese arm is the market leader in the country with more than 6 million sq. metres of facilities managed by the company.
Nol van Fenema