PETALING JAYA (June 30): CBRE Global Investors has completed the sale of Mitsubishi Fuso portfolio in Japan comprising 169 properties for JPY$140.4 billion (RM5.58 billion) in early June, representing a 33.6% premium to the company’s purchase price.
In an announcement made on June 24, the real assets investment management firm said the portfolio had been sold progressively with the final disposal successfully taking place earlier this month, notwithstanding the recent market disruptions arising from the COVID-19 pandemic. The sale of the logistic portfolio translates to a blended exit cap rate of 5.2%, or a circa 200 bps yield compression from the ingoing yield of 7.2%.
The Portfolio was acquired in July 2016 for JPY 105.1 billion on behalf of an investor consortium which included CBRE Asia Value Partners IV, the Firm’s flagship, Pan-Asia, enhanced return investment program.
It comprises 169 light industrial properties located across Japan with a combined gross floor area of around 520,000 sqm. These properties are fully leased to Mitsubishi Fuso Truck and Bus Corporation, one of the largest heavy vehicle suppliers in Japan. Given the size of the Portfolio, the acquisition was recognized as the largest real estate transaction in Japan that year.
CBRE Global Investors (Asia Pacific) CEO and chief investment officer Adrian Baker said, the company continues to be focused on Japan logistics and are actively deploying capital to opportunities where the company can create defensive, core assets through various value-add and development initiatives.
“We actively pursued a strategy involving substantial lease extension and property improvements to enhance the quality of the Portfolio,” added the company’s country head for Japan Tetsuya Fujita.
CBRE Global Investors is an active player in the Japan logistics and industrial sector. Since 2016, it has invested over JPY$ 215 billion (RM8.55 billion) in the sector, acquiring and developing over 1.2 million square meters (in net lettable area) of high-quality logistics space.
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