Dutch pension fund investor PGGM said it is providing €150m for the construction of two large and sustainable distribution centres in Japan.
The €205bn institution is co-investing alongside logistics investment platform e-Shang Redwood (ESR).
The deal comes soon after a similar investments in Japan by the joint venture partners for €200m.
The 390,000sqm and 225,000sqm assets will be located in the urban areas of Osaka and Tokyo.
PGGM said the investment was in anticipation of a “very dynamic” market for both logistics and e-commerce, in metropolitan areas with a shortage of modern earthquake-proof facilities.
ESR, which invests in and manages logistics property in Japan China, was created through the merger of e-Shang and Redwood in 2016.
PGGM, the asset manager for the €185bn healthcare pension scheme PFZW, has so far committed €736m in total to the strategic partnership with ESR.
Guido Verhoef, PGGM’s head of Private Real Estate, said the partnership “offered its clients direct access to the largest and most modern logistical projects on top locations in Asia with the strongest economic urban areas in the world.”
He said: “The fast urbanisation and growth in e-commerce lead to a strong increase of consumption as well as logistical innovation. This offers great investment opportunities for the long term.”
According to PGGM, the multi-floor projects are of a new and “very sustainable” generation, with their energy needs largely generated by solar panels on the rooftop.
As a consequence, carbon emissions would be 80% lower than average in the sector.
The asset manager added that, because of the solar panels’ shade, energy costs could be limited by 20%.
PGGM also said that the concrete and asphalt used for construction would largely be recycled material, and that rain water would be captured and re-used.
Thijs Schoenaker, PGGM’s director Private Real Estate Asia-Pacific, said that both projects would generate an “attractive return”.
