CBRE Global Investors has raised US$265m (€221.5m) for a sidecar to its CBRE Asia Value Partners V fund (AVP V) for investing in logistics development projects in Japan.
Adrian Baker, CBRE GI’s president and CIO of Asia Pacific direct real estate, told IPE Real Assets that the co-investment came from existing investors who had chosen to step up their exposure to logistics in Japan.
He said the latest raising was already fully committed.
“We have identified five projects in Japan for the latest raising,” he said. With leverage, the additional capital had increased the fund’s purchasing power by US$800m.
The projects are located in popular logistics destinations within Greater Tokyo and Fukuoka.
AVP V raised US$900m when it closed in March last year, which gave the fund an investment capacity of US$2.3bn.
The capital had all been deployed primarily in logistics assets with a development focus in Japan, China and South Korea.
“We continue to see a strong pipeline of logistics opportunities with the last 12 months being particularly active. We have not seen market dislocations as a result of the pandemic,” he said.
Baker said with office and retail experiencing their own issues core logistics assets were keenly sought after in the region because logistics was the flavour of the day.
“We believe the logistics sector in Asia Pacific has demonstrated resilience and added relevance amidst COVID-19. It is well poised to benefit from the weight of institutional capital that remains under-allocated to logistics, particularly in this part of the world.“
When it closes on the pending transactions in Japan, the fund’s assets under management will grow to US$3.1bn, making it one of the largest in CBRE GI’s flagship Asia Pacific value add program.
IPE Real Assets understands that CBRE GI could be expected to launch a follow-up fund once AVP V is fully invested.
Baker said the life of the vehicle was eight years, but the expected holding period of the assets was five to six years.
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