CBRE Global Investors announced that it has completed the sale of Mitsubishi Fuso portfolio in Japan, comprising 169 light industrial properties located across Japan with a combined GFA of circa. 520,000 square meters for JPY 140.4 billion ($1.31 billion), representing a 33.6% premium to purchase price.
The portfolio was acquired in July 2016 for JPY 105.1 billion ($980 million) on behalf of an investor consortium which included CBRE Asia Value Partners IV, the Firm’s flagship, Pan-Asia, enhanced return investment program.
This translates to a blended exit cap rate of 5.2%, or a circa. 200 bps yield compression from the ingoing yield of 7.2%.
These properties are fully leased to Mitsubishi Fuso Truck and Bus Corporation, one of the largest heavy vehicle suppliers in Japan. Given the size of the portfolio, the acquisition was recognized as the largest real estate transaction in Japan that year.
“CBRE Global Investors continues to be focused on Japan logistics and are actively deploying capital to opportunities where we can create defensive, core assets through various value-add and development initiatives,” said Adrian Baker, Chief Executive Officer and Chief Investment Officer for CBRE Global Investors in Asia Pacific.
“We actively pursued a strategy involving substantial lease extension and property improvements to enhance the quality of the portfolio,” added Tetsuya Fujita, Country Head for Japan.
“With an extended lease term, best-in-class lease covenants and compelling income yield, the properties were highly sought after by a diverse group of investors seeking quality income producing assets, ranging from high net worth individuals to institutions. It is our pleasure to execute this large, unique Portfolio on behalf of our clients and we anticipate further strong outcomes on the Firm’s investments in Japan in future.”
CBRE Global Investors is an active player in the Japan logistics and industrial sector. Since 2016, it has invested over JPY 215 billion in the sector, acquiring and developing over 1.2 million square meters (in net leaseable area) of high-quality logistics space.
