In the latest logistics-related deal to come to market in recent weeks, Ivanhoé Cambridge and PAG have announced the launch of a new Japan-focused logistics venture. The new platform aims to deploy $400m developing and acquiring high-quality core logistics facilities in urban and last mile locations.
George Agethen, Senior Vice-president Asia-Pacific at Ivanhoé Cambridge, said, “Logistics has proven to be highly resilient during this pandemic and will remain a key focus in the coming years, especially in Asia Pacific, where we are already invested in Singapore, Australia, China, India and Indonesia. We’re delighted to launch this new investment strategy in Japan and this venture will significantly accelerate our capacity to grow and diversify our portfolio in this key Asian market.”
Demand for logistics facilities has seen strong growth in 2020 with e-commerce a key driver. The new venture is designed to take advantage of a scarcity of available modern, high-grade logistics properties in Japan with particular demand in Tokyo, Osaka and Nagoya.
“The chosen target cities in Japan are attractive as they are highly urbanized, have low vacancies and there is significant room to grow in their e-commerce penetration rates”, Mr Agethen added.
Jon Paul Toppino, PAG Group President and Managing Partner of PAG Real Estate commented, “PAG has been investing in Japan real estate since 1997, with a comprehensive knowledge of local markets and a strong track record. We expect the logistics sector in Japan to remain a durable and attractive opportunity, and we look forward to working with Ivanhoé Cambridge as they continue to grow their portfolio in the region.”
The venture will have over $400 million in investment capacity and has already identified a pipeline of opportunities for its investment program. It will be governed by an investment committee composed of Ivanhoé Cambridge, as majority shareholder in the venture, and PAG, which will operationally manage the venture.
This joint venture reinforces the strategic partnership between Ivanhoé Cambridge and PAG, which started with a first investment in 2017.