(TOKYO) – Hines, the global real estate firm, today announced the acquisition and development of Yatomi Distribution Center in Nagoya, Japan. The project represents the first logistics acquisition and development for Hines in Japan and the fifth new logistics investment for the Hines Asia Pacific region in the last year.
The two-building project consists of an existing state-of-the-art single story logistics center, totaling 25,000 square meters, and a development site entitled to construct a 4-story logistics building totaling 225,000 square meters. Design and permitting for the new development are underway and groundbreaking will occur in the second quarter of 2022. Tokyo-based Strategic Asset Solutions K.K. represented Hines in negotiations with the seller.
“Our logistics customers are changing their approach to site selection, placing a stronger emphasis on ensuring their facilities are on the leading edge of sustainability initiatives to attract labor,” said Drew Huffman, managing director at Hines. “We hope to exceed those demands while also providing market leading clear heights, floor loads, and layout flexibility to address our users’ core business focus – moving goods quickly and efficiently.”
Located near the Port of Nagoya, the largest and busiest port in Japan, the buildings will target both dry and cold storage users, last-mile logistics providers and major regional distribution users. The new development will provide up to 6.5 meter clear heights, floor loads exceeding two tons, ample user demising options, and truck access to all levels of the building. The development will also include a next generation three-story amenity area complete with indoor and outdoor eating areas, tenant breakrooms and business lounges, conference rooms, and tenant showers. The development will target a LEED Silver Certification and include renewable onsite power generation, water reclamation, and optimized energy performance of mechanical, electrical and plumbing systems throughout the facility. The existing facility provides market-leading clear heights of over 10 meters and dual sided loading, a rare feature in the Japan logistics market.
Yatomi Distribution Center represents the second Hines investment in Japan in four months, following the acquisition of New Stage Yokohama, a research and development focused office building in the Greater Tokyo metropolitan area in November 2021.
“Japan’s logistics market is an attractive investment target for Hines’ continued expansion in Asia Pacific. As much of the existing stock is obsolete and e-commerce growth has been strong, Hines anticipates continued demand growth, particularly for next generation ESG oriented facilities,” said Jon Tanaka, country head of Hines in Japan. “We look forward to continuing to expand this product offering in the region.”
Globally, Hines has invested nearly $4.1 billion in the industrial and logistics sector and completed over 60 acquisitions totaling more than 43 million square feet. Hines has an additional 36 development projects ranging from in-design to completed, currently held in our portfolio representing over an additional 25 million square feet.
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 255 cities in 27 countries. Hines oversees investment assets under management totaling approximately $83.6 billion¹. In addition, Hines provides third-party property-level services to more than 367 properties totaling 138.3 million square feet. Historically, Hines has developed, redeveloped or acquired approximately 1,486 properties, totaling over 492 million square feet. The firm currently has more than 171 developments underway around the world. With extensive experience in investments across the risk spectrum and all property types, and a foundational commitment to ESG, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information. ¹Includes both the global Hines organization as well as RIA AUM as of June 30, 2021.