Canada Pension Plan Investment Board (CPP Investments) has committed ¥150bn (€808.5m) as a cornerstone investor to Ares Management Corporation’s fifth Japan logistics development fund, which has reached its hard cap with a ¥612bn final close.
CPP Investments, which has backed the strategy since its 2011 inception, made the commitment to Japan Logistics Development Partners V (JDP V), a fund nearly 50% larger than its ¥412bn predecessor in 2021.
JDP V also attracted commitments from pension funds, sovereign wealth funds, insurers and other institutional investors across North America, Asia-Pacific, Europe and the Middle East.
Ares said JDP V, which has a total investment capacity of ¥1.7tn to develop modern logistics facilities across Greater Tokyo, Greater Osaka and Nagoya, has already committed capital to projects representing approximately ¥450bn in total investment.
The projects will be developed and operated by Ares’s global logistics platform Marq Logistics.
Julie Solomon, partner and head of Ares Real Estate, said: “The successful close of our largest closed-end real estate fund to date reflects the strength of the team’s track record, the compelling opportunity set in Japan and the benefits of Ares’ scaled real estate platform.
“We look forward to continuing to create value for our investors through disciplined execution, local market expertise and global data and insights.”
Yoshiyuki Chosa, partner and head of Japan real estate at Ares, said: “Japan remains one of the most attractive logistics markets globally, supported by long-term structural demand for modern supply-chain infrastructure.
“JDP V’s successful close reflects the confidence investors have placed in our platform and the enduring relationships we have built with customers and local stakeholders over many years. We believe the fund is well positioned to capitalise on the next phase of logistics development opportunities across Japan.”
Gilles Chow, managing director, head of real estate Asia Pacific, CPP Investments, said: “For more than a decade, we have invested in Japan’s logistics sector as part of our global strategy to deploy long-term capital in high-conviction markets and sectors.
“We continue to see value in modern logistics infrastructure supported by resilient demand, evolving supply chains and a positive outlook for rental growth. JDP V provides compelling exposure to these themes and aligns with our disciplined approach to building a diversified portfolio that can deliver sustainable, attractive risk-adjusted returns for CPP contributors and beneficiaries.”
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