Mitsui Fudosan Logistics REIT Buys Three Japan Assets for S$229M, Sells Yokohama Stake
Mitsui Fudosan Logistics Park has agreed to acquire three industrial properties in Japan for JPY 35.7 billion (S$229 million) and sell its entire 50 per cent stake in MFLP Yokohama Daikoku for JPY 11.9 billion. The deals, which involve fully occupied assets completed in 2025 and 2026, are part of th
Mitsui Fudosan Logistics Park (MFLP-REIT) has agreed to buy three industrial properties for JPY 35.7 billion (S$229 million) and sell its entire 50 per cent interest in MFLP Yokohama Daikoku for JPY 11.9 billion, as the Tokyo-listed trust replaces an ageing asset with fully occupied warehouses completed in 2025 and 2026.
The REIT will dispose of its half-stake in the 100,530 square metre (1.1 million square foot) Yokohama Daikoku facility, built in 2009, at a price 25.5 per cent above its July book value. All three acquisitions — in Aichi, Kanagawa and Kumamoto prefectures — were fully occupied as of 31 July, according to a Thursday filing.
“These transactions are part of the MFLP-REIT’s efforts to build a robust portfolio by replacing owned properties, aiming to enhance medium- to long-term and overall profitability,” the trust’s manager said. The acquisitions exceed disposal proceeds by JPY 23.8 billion and will be funded with cash, sale proceeds and loans. Completion is scheduled for 1 October in Kumamoto and 1 February 2027 for the other two purchases, which are subject to securing financing.
The largest purchase is MFLP Ichinomiya in Aichi prefecture, which the trust is buying from sponsor Mitsui Fudosan for JPY 19 billion, or JPY 305,000 per square metre of gross floor area. Completed in April 2025, the four-storey, 62,343 square metre facility is leased to logistics firm Meikon and positioned to serve Nagoya and distribution routes between Tokyo and Osaka. Mitsui Fudosan is also selling MFIP Ebina & Forest in Kanagawa prefecture for JPY 14.5 billion, equivalent to JPY 369,000 per square metre. The four-storey, 39,290 square metre property was completed in June and has three tenants, with Yokogawa Rental & Lease the largest.
Roughly half the Ebina building was designed for offices, research facilities and laboratories alongside its logistics functions, according to Mitsui Fudosan’s development announcement. The manager highlighted the property’s proximity to Ebina station and surrounding amenities as advantages in attracting tenants that need to recruit researchers and other staff. In Kumamoto prefecture, the trust will buy On-L Kyokushiisaka from Fukuoka-based developer Office Network for JPY 2.2 billion, or JPY 354,000 per square metre. The two-storey warehouse in Kikuchi spans 6,210 square metres of gross floor area, was completed in May 2025 and is leased to Sagawa Global Logistics.
The manager said the Kumamoto property is positioned to capture logistics demand from a semiconductor cluster that includes JASM, Tokyo Electron and Sony Semiconductor Manufacturing. JASM’s expansion, planned industrial parks and improvements to surrounding road infrastructure are expected to support demand over the medium to long term, it said. Mitsui Fudosan Private REIT will buy the half-stake in MFLP Yokohama Daikoku in two tranches: 30 per cent for JPY 7.1 billion on 29 January 2027 and 20 per cent for JPY 4.8 billion on 30 July 2027. The combined price equates to JPY 237,000 per square metre.
Upon completion of the transactions, MFLP-REIT’s portfolio will comprise interests in 51 properties with a combined acquisition value of JPY 612 billion (S$3.9 billion). The deals come as Greater Tokyo’s logistics market absorbs vacant space. Vacancy among large multi-tenant facilities fell to 7.8 per cent in the second quarter from 9.2 per cent three months earlier, while effective rents rose 1.5 per cent quarter on quarter, according to CBRE’s latest market report.
The recovery remains uneven. Greater Nagoya’s vacancy rate declined 0.9 percentage points to 15.9 per cent in the same period, with effective rents unchanged, the consultancy said. MFLP-REIT’s Ichinomiya purchase adds a fully occupied property in a market where new developments are still being delivered with substantial vacancies. Institutional capital continues to target the sector, with Ares Management announcing earlier this month that its fifth Japan logistics development fund had closed at JPY 612 billion (S$4 billion). Backed by a JPY 150 billion commitment from the Canada Pension Plan Investment Board, the vehicle has JPY 1.7 trillion of investment capacity targeting modern facilities in Greater Tokyo, Greater Osaka and Nagoya.
