AXA IM Alts announced it has begun construction of a Grade-A logistics facility on a 79,095 sqm site in Kisosaki, near Nagoya, Japan.
The development site was acquired in March 2020, on behalf of clients, and through AXA IM Alts’ Real Assets platform alongside ESR, an Asia-Pacific logistics real estate platform.
The logistics facility construction site was purchased from the Mie Prefectural Government and represents a total investment size of ¥27 billion (€220 million).
The development will be spread over four storeys and is targeting practical completion by the end of April 2022. With flexible unit sizes ranging from c.5,000 sqm, the c.155,000 sqm building will be suitable for a diverse range of occupiers, who will also benefit from a range of best-in-class amenities. Sustainability has been a key consideration, and the asset is being designed to utilise solar power as well as to meet CASBEE A classification standards.
ESR will be responsible for the development phase and support on the leasing programme and management of the completed asset, with marketing for the leasing of the asset currently underway.
“This is a rare opportunity to acquire a well located site suitable for the development of a Grade-A logistics facility, an asset class that has proved resilient against the backdrop of the global pandemic, in a region where investment activity is set to benefit from supportive market fundamentals. It is yet another example of our ability to leverage the relationships we have forged with local partners across the region to successfully originate opportunities on behalf of our clients that offer both asset class diversification and which support a range of investment strategies. At the same time, being able to leverage our development expertise to take on this project in what is a maturing e-commerce market allows us an opportunity to capture outsized returns, whilst also demonstrating our conviction call that the underlying structural shifts impacting the Japanese logistics sector are likely to support further yield compression,” said Laurent Jacquemin, Head of Asia Pacific at AXA IM Alts.