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Tue, November 24, 2020 – 4:15 pm
MAPLETREE Investments has entered the Kyushu logistics market by acquiring prime land spanning a whopping 116,319 square meters (m2) or nearly 1.3 million square feet (square feet). That’s roughly the size of 15 soccer fields.
In a statement Tuesday, Mapletree said it will develop two four-story, double-ramp grade A logistics facility blocks at the site. They will have a combined gross area of 231,648 square meters or about 2.5 million square feet.
While it did not disclose the acquisition price of the land, Mapletree said that the total investment for the development will be more than S $ 550 million.
This is expected to be the largest storage space in Kyushu once completed, according to the privately owned real estate giant, which manages four Singapore-listed real estate investment trusts and five private equity real estate funds.
Construction of the first warehouse will be completed in early 2023, while the opening of the second warehouse is scheduled for the second quarter of 2024.
The sprawling site is located in the city of Chikushino of Fukuoka prefecture on the Japanese island of Kyushu, and is well connected to the main transportation infrastructure.
Wong Mun Hoong, Mapletree’s regional executive director for Australia and North Asia, said Fukuoka is one of the regions in Japan “where the group has a strong belief in modern logistics facilities.”
He noted that Fukuoka is considered the economic, administrative and cultural center of the Kyushu region, attracting companies from different industries to locate their branches within the city or in the vicinity.
Home to Japan’s youngest population, the city is rapidly expanding and counts as one of the country’s key industrial centers, especially for the logistics, high-tech and auto manufacturing sectors, Mapletree said.
Meanwhile, a report released Tuesday by the Urban Land Institute (ULI) and PwC noted that logistics properties have become investors’ favorites. It is the only major real estate asset class whose fundamentals have improved as a result of the pandemic, due in part to growing demand from e-commerce retailers.
The structural lack of supply from logistics facilities also means that demand must remain strong, although investors are concerned that online sales growth may peak and that industry price dynamics may outpace the market. , according to the ULI-PwC report.
And specifically in Japan, logistics assets, along with multi-family residential properties, are now the main asset classes driving the local real estate market, according to the report.
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