Hines, Together with Mitsubishi Estate and MBK Real Estate Asia, Acquires Singapore Industrial Property

Transaction highlights Hines’ creative deal and joint venture structuring in Singapore with Japanese partners

(SINGAPORE) – Hines, a global real estate investment manager, together with Mitsubishi Estate Co., Ltd. (through its Singapore-based investment vehicle One MEA Holdings Pte. Ltd.) and MBK Real Estate Asia (“MREA”, which is a wholly-owned subsidiary of Mitsui & Co., Ltd.), jointly announced the acquisition of a prime, strategically located logistics asset at 15 Senoko Loop in Singapore.

This completed sale and leaseback transaction is Hines’ second industrial deal in the country, further driving its growth momentum in the region. The Hines team in Singapore closed the deal with Mitsubishi Estate and MREA in late June 2024, with Sumitomo Mitsui Banking Corporation Singapore Branch as the financing partner for Hines. This transaction is Hines’ first joint venture with Japanese institutional partners in the country.

“We’re incredibly honored and pleased to have Mitsubishi Estate and MREA, both real estate companies with presence in Singapore, as our partners,” said Kian Fong Lim, Country Head for Singapore at Hines. “With the growing strength of our industrial portfolio in Singapore, together with the sector’s demand and supply dynamics, we’re optimistic and eager to capture more opportunities in the market.”

Singapore’s industrial and logistics sector remains the most popular among Asia Pacific investors.[1] Limited quality spaces and a supply crunch have also driven up rent prices and capital value growth in the first quarter of 2024.[2]

With close proximity to the Johor-Singapore Causeway to Malaysia, the property sits on a 24,464-square-meter site with a four-story facility that has around 41,482 square meters of total gross floor area. It comprises climate-controlled warehouse space and an administration area. The building is currently leased back to the seller, British American Tobacco, as the anchor tenant.

“Singapore’s logistics and industrial sector continue to be robust,” said Koji Segawa, Managing Director of Mitsubishi Estate Asia, Mitsubishi Estate's subsidiary overseeing the Southeast Asia region. “With a strong track record and deep experience in Asia Pacific as asset managers, owners, and investors, we’re confident that our collaboration with Hines will bring about greater value to our tenant and the community.”

“Collaborating with Hines is an exciting development,” said Koji Nishikiori, Director & CEO, at MREA. “The prime location of the property and the strong performance of Singapore's industrial and logistics market make this acquisition highly attractive. We look forward to working with Hines to better serve our tenant and contribute positively to the industry.”

Since 2020, Hines has secured 16 industrial assets in Asia Pacific totaling around 460,000 square metres (five million square feet) across five markets in Australia, China, Japan, South Korea, and Singapore.[3] The deal marks Hines’ second industrial and logistics acquisition in Singapore and aims to illustrate the firm’s commitment to continue to grow its portfolio in the country.

About Hines

Hines is a leading global real estate investment manager. We own and operate $93.2 billion1 of assets across property types and on behalf of a diverse group of institutional and private wealth clients. Every day, our 5,000 employees in 30 countries draw on our 65-year history to build the world forward by investing in, developing, and managing some of the world’s best real estate. To learn more, visit www.hines.com and follow @Hines on social media.

¹Includes both the global Hines organization as well as RIA AUM as of December 31, 2023.

About MBK Real Estate Asia Pte. Ltd.

MBK Real Estate Asia Pte. Ltd. is a real estate developer, which is a wholly-owned subsidiary of Mitsui and Co., Ltd. Founded in 2017, MBK Real Estate Asia Pte. Ltd creates additional value on various projects in South East Asia real estate business by leveraging on Mitsui & Co., Ltd.’s overall capability and network.

About Mitsui & Co., Ltd.

Mitsui & Co. is a global trading and investment company with a presence in more than 60 countries and a diverse business portfolio covering a wide range of industries.

The company identifies, develops, and grows its businesses in partnership with a global network of trusted partners including world leading companies, combining its geographic and cross-industry strengths to create long-term sustainable value for its stakeholders.

Mitsui has set three key strategic initiatives for its current Medium-term Management Plan: supporting industries to grow and evolve with stable supplies of resources and materials, and providing infrastructure; promoting a global transition to low-carbon and renewable energy; and empowering people to lead healthy lives through the delivery of quality healthcare and access to good nutrition.

Visit https://www.mitsui.com/jp/en/ for more information.

About Mitsubishi Estate Co., Ltd.

Established in 1937, Mitsubishi Estate Co., Ltd. (“MEC”) has a long history of excellence as one of the largest real estate companies operating a global spectrum of businesses in diverse fields related to real estate. MEC focuses on a wide variety of high-quality projects such as office buildings, residences, industrials, and outlet malls throughout countries like the United States, the United Kingdom, and countries in Asia/Oceania such as China, Singapore, Indonesia, Vietnam, Thailand, and Australia.

Mitsubishi Estate Group established Mitsubishi Estate Asia Pte. Ltd. in Singapore in 2008. Since entering the Southeast Asian market, Mitsubishi Estate Group has collected profound development experience over a long period of time. Partnering with trusted local developers and diverse enterprises, Mitsubishi Estate Group is continuously providing prime-quality real estate projects.

MEC’s core mission is to contribute to society through urban development, providing a holistic environment for people to work, live and enjoy a habitat enriched with dynamic components and opportunities. While leveraging and enhancing its strength, MEC aims to realise sustainable corporate value enhancement through its steadfast commitment to creating attractive urban environments designed for anticipation in the change of times and magnifying lifestyles.

For more information on Mitsubishi Estate Group, please visit: https://www.mec.co.jp/en/.

[1] This is based on CBRE’s 2024 Asia Pacific Investor Intentions Survey taken from CBRE’s Singapore Inbound & Outbound Investment Trends report published in April 2024.

[2] From JLL’s Asia Pacific Logistics and Industrial Q1 2024 report.

[3] These figures are as of June 2024.

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