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Nuveen Real Estate acquires logistics asset in Japan on behalf of its Asia Pacific cities platform

Odawara logistics
  • Third acquisition by Nuveen Real Estate’s Asia Pacific cities platform
  • 50% stake in a 2.1 million sq ft (199,500 sq m) logistics asset located in Greater Tokyo
  • Fully let to a leading e-commerce business, reflecting the structural e-commerce trend
  • The Asia Pacific platform forms part of Nuveen Real Estate’s global resilient series 
The Asia Pacific cities platform, managed by Nuveen Real Estate one of the world’s largest global real estate investment managers, has acquired a 50% stake in Odawara Logistics in Greater Tokyo, alongside an aligned co-investment partner.  

“Tokyo is a key principle city for investment for the Asia Pacific cities platform, offering a core, liquid, transparent, highly institutional and investable marketplace,” commented Louise Kavanagh, Managing Director Asia Pacific, Nuveen Real Estate. 

“Structurally speaking, the logistics sector offers long-term value, backed by the rise of e-commerce and favourable demographics. From a macro-perspective the Tokyo logistics market provides a very attractive investment story at this point of the cycle with a premium over the office sector, providing a more attractive yield spread and, in the case of the investment made, a stronger cash-on-cash yield.”

The acquisition, which has been completed, is the key logistics fulfilment centre for a leading e-commerce business in Japan accounting for a quarter of the company’s total logistics storage space in the country. The company is the leading e-commerce operator in the country with a 25% market share.

Completed in 2013, the state-of-the-art hub is strategically located in the Greater Tokyo area, with direct connections to major cities, along key infrastructure and transportation nodes serving the majority of the Japanese market. 

“This asset provides an exceptional opportunity for the platform due to its well-connected, unique location, strong pool of employable labour and strength of tenant,” added Kavanagh. 

The asset represents the third acquisition for the open-ended platform, which focuses on selected ‘future-proof’ cities across Asia Pacific, helping to diversify the platform into three key principle gateway cities. The platform has been well-received by the institutional investor community, with further equity flows accepted during the final quarter of the year. This latest acquisition brings the portfolio’s total AUM close to US$400m in less than a year, having launched in November 2018. 

The platform forms part of the firm’s global resilient series, which focuses on investing in high-quality assets in leading cities that are well-positioned in terms of long-term structural trends, including demographic change, urbanisation and technology and in doing so, possibly delivers attractive, risk-adjusted returns to investors. 
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