Mitsui Fudosan plans to list a logistics REIT in Japan.
An industry source told IPE Real Estate Mitsui Fudosan was hoping to list its own logistics REIT “within a month” on the Tokyo Stock Exchange.
Mitsui Fudosan owns 10 logistics centres and has about a dozen in its development pipeline.
Its plan for the trust is to tap growing e-commerce-related demand and to attract more funds for property development.
The source, however, said Brexit had cast some uncertainty on the initial public offering.
“No one can tell if they will successfully launch the REIT,” the source said.
Global Logistic Properties (GLP) is, meanwhile, selling a 50% share of a Japanese warehouse it jointly developed with Mitsui Fudosan.
The stake in GLP-MFLP Ichikawa Shiohama in the Tokyo Bay area will be sold for around JPY15.5bn (€136m), at a 4.5% yield to the listed GLP J-REIT.
GLP said it would crystallise a development profit margin of JPY4.9bn (46%) from the asset.
Yoshiyuki Chosa, president at GLP Japan, said: “This transaction creates considerable value for GLP and highlights the embedded value of our development pipeline.
“GLP remains committed to its strategy of recycling capital and growing its fund-management platform to maximise value for its shareholders.”
The sale price is in line with the latest appraisal value as of 31 March 2016.
The transaction is expected to complete in September.
The company said net sale proceeds for GLP were estimated at JPY7.9bn, which GLP plans to reinvest in development in Japan.
The 122,000sqm property was completed in early 2014 and is fully let to Rakuten, H&M and Forever 21.