NETHERLANDS – The €338bn asset manager APG has invested almost €170m in warehouses in Japan through LaSalle Investment Management's Japan Logistics Fund III.

The club-style fund, which closed on €325m, will focus on modern multi-tenanted logistics facilities in Greater Tokyo and Greater Osaka, according to LaSalle.

The Dutch asset manager said: "In general, APG considers investing in logistic warehouses as attractive, due to the limited capital expenditure requirements compared with other real estate sectors, which creates appealing cash yields.

"Specifically in Japan, there is still a need for large, modern and diversified warehouse space in inland areas with good transportation links to city centres."

APG attributed the demand to pressure on returns, which forced trading companies to lease warehouse space – as opposed to owning or operating it – in order to lower costs and improve operational efficiency.

"This need has further been enhanced by the increase in specifications for seismic resilience of the buildings following the earthquake of 2011," it said.

APG – asset manager for the €286bn civil service scheme ABP – declined to provide more information.

According to LaSalle, it worked closely with investors to design its club-style JLF III fund.

It said this particular style of vehicle afforded a small group of investors greater control and flexibility.

Yasuo Nakashima, chief executive at LaSalle Investment Management in Japan, said: "We strongly favour the logistics sector because of the large gap between supply and demand, and the new investment leverage on an existing full-service warehouse development platform we have built over the past 10 years."

LaSalle was established in 2000 in Asia, and currently manages €4.1bn in Asia Pacific property assets.