Hong Kong-based PAG acquires Japan logistics assets from Hines for about US$430 mil

By EdgeProp Singapore

/ EdgeProp Singapore |

April 2, 2024 3:05 PM SGT

The 2.3 million sq ft Yatomi Distribution Centre was Hines' first development project in Japan and was completed in February before it was sold to PAG last week (Photo: Hines)

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Hong Kong-based alternative asset manager PAG purchased a logistics centre in central Japan from Hines, a Houston-based global real estate investment, development and property manager.

Hines declined to comment on the purchase price except to say, "It's one of the largest warehouse transactions in Japan".

According to a Bloomberg report, the deal is said to be in the range of JPY 65-66 billion (US$429-US$435 million).

The acquisition covers two logistics properties in Yatomi, near the Nagoya Port, the busiest port in Japan. The latest acquisition, which closed last week, was for a four-storey, 218,000 sqm (2.3 million sq ft) logistics centre on a 25-acre development site that Hines acquired in 2021. The new, state-of-the-art Yatomi Distribution Centre was completed in February 2024 and marked Hines' first ground-up development project in Japan.

Interior of the newly completed Yatomi Distribution Centre by Hines (Photo: Hines)

In 2021, Hines also acquired a smaller 25,000 sqm (269,100 sq ft) warehouse adjacent to its development site in Yatomi. Hines fully leased the warehouse to a 3PL company before selling it at the end of last year.

"Japan's logistics market continues to be an attractive investment target for Hines' expansion in Asia Pacific," comments Jon Tanaka, country head of Hines in Japan.

Tanaka: Japan's logistics market continues to be an attractive investment target for Hines' expansion in Asia Pacific (Photo: Hines)

Hines opened its central Tokyo office in 2017. Initially established to handle capital market deals, it expanded in 2020 to include development, acquisitions, and asset management. To date, it has over 300,000 sqm (over 3.2 million sq ft) of assets acquired or developed across six cities in Japan.

The Houston-based firm was founded by Gerald D. Hines in 1957. It has a global real estate portfolio of US$93.2 billion in over 30 countries, with assets in residential, logistics, retail, office, and mixed-use developments.

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