AXA IM - Real Assets, ESR and SWF Japanese logistics JV buys €807m portfolio

AXA Investment Managers - Real Assets has expanded its logistics portfolio into Japan with the acquisition of over JPY100bn (€807m) of assets in partnership with pan-Asian logistics group ESR and an unnamed sovereign wealth fund (SWF).

The newly formed long-term Japanese core logistics joint venture’s initial portfolio is made up of the 37,700sqm portfolio of six newly-built logistics assets by ESR. Five of the assets are located in Tokyo and the sixth asset is in Osaka.

The venture will have access to ESR’s development pipeline of distribution facilities across Japan’s gateway cities, AXA IM - Real Assets said, adding that it will also consider investments sourced through other channels.

AXA IM - Real Assets, on behalf of clients, said the venture will ”seek further investment and development opportunities diversified across Japan’s gateways cities”.

The venture will use commitments from the existing investors while over time considering raising new capital from new investors.

It will target large modern logistics facilities, which have the ability to deliver ”secure income returns” over the long term, AXA IM - Real Assets said.

AXA IM - Real Assets said the latest deal expands its €2bn global logistics portfolio into Japan for the first time.

Laurent Jacquemin, the head of Asia Pacific at AXA IM - Real Assets, said: “This transaction represents a rare opportunity for us to not only invest in a large and well established logistics portfolio in high demand locations that serve Japan’s two largest cities, but also establish a new joint venture with two like-minded investors.”

In a joint statement, Stuart Gibson, co-founder and co-CEO of ESR, and Charles de Portes, co-founder and president of ESR, said: ”This new investment platform is a testimony to the global institutional investment demand for stable logistics assets and income streams in Japan.

”It further affords a great opportunity for ESR to unlock the investment potential of our newly-built, modern logistics assets while delivering solid returns to our investors over the long term.”