GOODMAN Group's partner J-REP Co Ltd has unveiled plans to establish a new Japanese private fund platform.
The platform is aimed at institutional investors seeking to invest in Japanese logistics assets sourced and managed by J-REP Co Ltd, a Tokyo Stock Exchange listed entity and a company which Goodman is a major shareholder.
The assets of the fund will be managed by J-REP Funds Management Co Ltd.
The initial portfolio is comprised of 15 assets with a total acquisition value of $A700 million. The portfolio has a weighted average lease expiry in excess of 10 years and an average building age of approximately one year.
In addition, the platform will be provided with a first right of refusal to invest in any properties divested by J-REP as well as in any existing or new opportunities it secures.
As part of the financing for this initial portfolio, J-REP secured a non-recourse four year term debt financing totalling $A0.5 billion from a syndicate of leading Japanese financial institutions arranged by the Development Bank of
Chief executive Gregory Goodman said J-REP expects the Japanese logistics real estate sector to grow strongly driven by demand/supply fundamentals.
“Demand has increased with higher corporate profitability increasing capital spending and tenants being focussed on larger scale assets. Supply is limited due to an extended period of underinvestment which has led to an inadequate existing stock of logistics facilities.
“The Japanese logistics sector is in an evolutionary phase with substantial growth in third party logistics operations and a slow but growing trend for domestic manufacturers to outsource their distribution function to third party logistics providers in order to focus on key operations,” he added.
Goodman said the fund will form a key pillar of J-REP’s growth strategy.
“The growth in J-REP’s assets under management will accelerate as it recycles capital alongside its investment partners.
“J-REP’s provision of services to the fund will create increased levels of annuity-style fee-income and will leverage off J-REP’s property services, development management, asset management and funds management capabilities,” he continued.
Meanwhile, J-REP’s president Wamoto has appointed Makoto Kurihara as head of developments. Kurihara has over 17 years of Japanese and
Kurihara was most recently the head of logistics real estate investment business at Orix Real Estate Corporation Limited.
In addition, Paul McGarry and Matthew Gibb from Macquarie Group and Goodman Group have joined J-REP’s senior management team based in
Australian Property Journal
