GIC spends more than US$800 million on logistics assets in Japan

SINGAPORE: Singapore sovereign wealth fund, GIC, has agreed to purchase a portfolio of six logistics assets in Japan for more than $800 million from Blackstone Inc, according to a statement by the American private equity company.

The deal consists of four million square feet of warehouses located in strategic locations  across Japan and is the largest real estate transaction in the country this year, in terms of value, according to data compiled by Refinitiv.

GIC has been investing in Japan for over three decades and has recently increased its deal activity as interest rates in the country remain low. Last year, the sovereign wealth fund purchased hotel and leisure assets from Seibu Holdings, a Japanese railway and hotel conglomerate.

Logistics real estate has become a popular investment target due to the rapid growth of e-commerce and the rise of online shopping, which has increased the demand for efficient and modern warehousing and distribution facilities. The COVID-19 pandemic has further accelerated this trend, as more people are shopping online than ever before.

Japan remains an attractive market for logistics real estate investors, given its highly developed infrastructure and strategic location in the Asia-Pacific region. GIC’s latest acquisition underscores the continued interest of global investors in the country’s real estate market. /TISG