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Sat 8 Sep 2012 09:43 AM

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Abu Dhabi JV eyes $1bn Japan investment

Abu Dhabi Investment Council partners with Australian firm to develop warehouses in Japan

Abu Dhabi JV eyes $1bn Japan investment
(Photo for illustrative purposes only)

Abu Dhabi Investment Council has partnered with an Australian real estate company to develop more than $1bn worth of logistics facilities in Japan.

The deal with the Goodman Group, which owns, develops and manages real estate including warehouses, business parks and offices globally, sees the establishment of the Goodman Japan Development Partnership (GJDP).

The agreement is a 50/50 venture between Goodman and the Abu Dhabi Investment Council, Goodman said in a statement.

A combined $500m of equity has been allocated to the partnership, with its leverage capability allowing for an initial investment target in excess of $1bn, the statement added.

GJDP said it has a strategy to develop modern logistics facilities in the major logistics markets of Japan.

It will launch with an initial investment in three prime development projects in the key logistics markets of Tokyo Bay and Osaka.

These developments have a planned total gross leasable area of 250,000 sq m and an estimated end value in excess of 55.5bn Japanese Yen ($700m).

“Today’s announcement further demonstrates our successful capital partnering approach with major global investor groups and underscores our strategy of matching third party capital with our growing development pipeline,” said Greg Goodman, chief executive of Goodman, in a statement.

Japan’s distribution centers are drawing investors as the market rebounds from record-high vacancies about two years ago.

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