PGGM has boosted its investments in Japanese logistics, committing a further $100m (€74.8m) to a strategy managed by The Redwood Group.

Singapore-based logistics fund manager Redwood, the Asia logistics partner of Equity International, has been given the commitment for its Japan Logistics Real Estate venture. Dutch pension fund asset manager PGGM has now committed more than $230m to the strategy. 

The closing follows PGGM’s $144m commitment on behalf of its Private Real Estate Fund to Redwood’s China Logistics Fund last month.

Ping Ip, investment manager for Japan with PGGM, said the investment fitted well into the fund’s long-term investment strategy.

The latest $100m commitment will be co-invested with Redwood’s Japan Logistics Fund into two central Tokyo logistics projects due for completion in 2015 and 2016.

Stuart Gibson and Hideaki Matsunami, CEO and managing director, respectively, of Redwood Japan issued a joint statement, saying demand in Japan for efficient, sustainable and safe logistics facilities was the “greatest” it had seen since it commenced operations in the Japanese logistics market in 1999. 

Limited supply during and after the crisis has, they added, led to record high occupancy in the sector.

In China, PGGM’s Private Real Estate fund has invested $270m in logistics through Redwood following an initial €95m investment in 2012.