Japan warehousing sees major investment
Australia’s biggest industrial property trust, Goodman Group (GMG), has teamed up with Abu Dhabi Investment Council, a government controlled fund manager, to purchase warehouses in Japan.
Greg Goodman, chief executive of GMG, said in a statement that the decision to work with Abu Dhabi Investment Council proves their commitment to expand their network and demonstrates their successful capital partnering approach with major global investor groups.
Goodman raised $500 million that will enable the fund to acquire more than $1 billion of logistics properties in cities such as Tokyo and Osaka. He adds that its Japan Core Fund also received allocations from three major investors, taking external commitments to over $100 million.
GMG’s venture with Abu Dhabi will start an investment in three projects in Tokyo Bay and Osaka, with a 250,000 square meters of gross leasable area. Meanwhile, distribution centers in Japan are attracting investors as the market recovers from high vacancies two years ago. CBRE Group Inc. has reported that Tokyo’s vacancy rate for multi-tenant warehouses fell to 3.6 percent from 5.2 in December, as manufacturers continue to improve their supply chains and distribution networks after the 2011 earthquake.Original Article: ReutersPhoto Credits: jnobles100 via Flickr Creative Commons