CapitaLand has divested three retail malls in Japan and an office building in Korea for a total of S$448.7m (€280m) – while simultaneously announcing its entry into the Japanese logistics market via a joint venture with Japanese conglomerate Mitsui & Co.

With the latest divestment, CapitaLand has reached its annual capital recycling target of S$3bn and CapitaLand and its real estate investment trusts had invested more than S$3.3bn into new assets.

As it pares down exposure to retail and office, CapitaLand has stepped up its investment into the logistics sector.

Jason Leow, president, Singapore & International, of CapitaLand Group, said the group was leveraging its logistics experience in markets such as Singapore, Australia and the UK to expand into Japan’s new economy sector.

The Singapore-based group holds a majority interest in the new venture with Mitsui which will develop and operate logistics asset. Its first project, a 24,000sqm four-storey logistics facility, will be located in Central Tokyo. It is due to be completed in the last quarter of 2022.

Gerald Yong, CEO of CapitaLand International, said the global pandemic had accelerated growth of e-commerce, and the logistics sector has been a prime beneficiary.

“We aim to achieve meaningful scale over time by leveraging Mitsui & Co Real Estate’s local knowledge and access to business opportunities to grow our logistics portfolio in Japan,” Yong said.

Yoshiyasu Furukawa, president and CEO of Mitsui & Co. Real Estate, spoke of a “winning partnership” born of combining his group’s extensive experience in Japan’s logistics sector and CapitaLand’s position as one of Asia’s largest diversified real estate groups.

CapitaLand has been operating in Japan and Korea for close to 20 years. Post-divestment, CapitaLand will retain assets under management of S$3.8bn and S$2bn in Japan and Korea respectively.

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