CapitaLand will invest about JPY 7.5 billion (S$90.8 million) in its second logistics asset in Japan.
The company has acquired freehold site to develop a four-storey modern logistics facility in Ibaraki City, Osaka, Japan.
CapitaLand acquired the site from Mitsui & Co. as part of its on-going collaboration with Mitsui & Co. Real Estate Ltd (Mitsui RE) to develop and operate best-in-class logistics projects in Japan.
The new logistics facility will be located within a major logistics hub in Osaka, well-connected to Kyoto and Kobe via major expressways. When completed in 3Q 2023, the logistics facility will have a gross floor area of about 27,000 square metres.
CapitaLand has also divested its two remaining retail malls, Olinas Mall and Seiyu & Sundrug Higashimatsuyama, in Greater Tokyo for a total of over JPY 42 billion (S$520 million).
Olinas Mall and Seiyu & Sundrug Higashimatsuyama were divested above their total valuation and CapitaLand is expected to realise a net gain of close to JPY 9 billion (S$109 million) from the divestment of the two malls. The buyers are unrelated third parties. The agreed value of the properties was arrived on a willing-buyer and willing-seller basis.
With the divestment of these two malls, CapitaLand has divested all its five malls in Japan.
“CapitaLand has successfully exited from retail in Japan, which is non-core to the Group, and will continue our strategic pivot by reinvesting the proceeds from the divestment of our mature malls into new economy assets like logistics that have significant growth opportunities. CapitaLand has more than 15 years of experience in logistics with over 100 prime logistics assets in countries such as Singapore, Australia, China, India and the United Kingdom. The Group’s total logistics assets under management (AUM) , including our two logistics assets in Japan, is about S$3.9 billion. Japan is a key market for CapitaLand to invest and expand our logistics portfolio to become a significant contributor to the Group’s total logistics AUM,” said Jason Leow, President, Singapore & International, CapitaLand Group.