Strategic acquisition in Japan’s logistics market
KKR‘s Japan-listed Industrial & Infrastructure Fund (IIF) is acquiring a four-story warehouse under construction in Hyogo prefecture, near Osaka, Japan, from Logisteed for JPY 9.24 billion ($66 million). The deal comes at an 8.5% discount to its July appraisal value and is expected to close in January 2025. Logisteed will lease back the 33,387 sqm facility for 30.2 years, with rent indexed to inflation, ensuring stable income.
Collaboration on medical logistics
Developed by Daiwa House, the logistics center will target medical shipments. The property is projected to generate JPY 388 million annually, with a 4.2% NOI yield. This deal is part of KKR’s broader strategy following its 2023 acquisition of Logisteed, formerly Hitachi Transport System. The transaction strengthens KKR’s footprint in Japan’s logistics sector, known for its 99% occupancy rate.
Expanding KKR’s real estate portfolio
KKR’s strategic investments, including its $3.5 billion portfolio of logistics, manufacturing, and infrastructure assets, demonstrate its aggressive expansion in Japan. Following a $2 billion acquisition of IIF’s manager in 2022, KKR continues to build its presence in this high-demand sector, further fueling Japan’s robust real estate growth.
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