December 1, 2022, Hong Kong – Real estate private equity firm Gaw Capital Partners announced today that the firm, through a fund under its management, has acquired a logistics portfolio with seven fully-let assets across Greater Tokyo, Japan.
The portfolio comprises of seven high-quality logistics assets with 76,593 tsubo (253,200 sqm) net rentable area, covering the circa 37 million population of Metropolitan Tokyo. All assets are located in popular logistics hubs across Greater Tokyo, offering a combination of excellent access to major cities nearby, attractive employment environment, and strong business continuity plan support.
The assets are located in Chiba, Joso, Hasuda, Hashimoto, Atsugi and Ashikaga, with most of the assets within a one-hour drive of central Tokyo. By leveraging Gaw Capital’s in-depth understanding of the logistics sector and local market knowledge, the firm plans to unlock the hidden value of the portfolio by carrying out a series of value-add strategies including cold storage conversion, and proactive asset management and ESG initiatives.
Isabella Lo, Managing Director and Head of Japan at Gaw Capital, said, “We are delighted to have completed our first logistics portfolio in Japan. With rising demand driven by continued urbanization and e-commerce, logistics assets in Japan continue to mature as an institutional asset class, increasingly attracting capital from both domestic and international investors. With the support from our experienced in-house team and local logistics partners, I believe we would fully unlock the returns.”
Joseph Chan, Managing Director, Principal – Investments at Gaw Capital, said, “We are delighted to have acquired the seven fully let logistics assets in Japan. We will integrate ESG elements, such as adding solar panels across the portfolio to reduce the carbon footprint of daily warehouse operations, obtain certification in green building rating programs such as LEED, CASBEE and WELL Building Standard, and ensure the logistics assets fulfil the ESG requirements of international logistics tenants. We also see strong value-add potential in several properties across the portfolio, which will be unleashed by Gaw Capital with our experience and track record across other APAC regions. Responding to Japan’s rising demand for cold storage facilities, our value-add strategy will include capturing the opportunity in this niche market by bringing in our expertise in recent successful cold storage conversions regionally.”
The population in Tokyo continues to grow, driving demand for various goods consumption and the subsequent demand for logistics. The e-commerce market in Japan saw impressive growth during the pandemic, reaching JPY 20 trillion in 2021, and this rapid change consequently increased the demand for logistics facilities. Despite this strong growth, e-commerce penetration in Japan continues to lag other developed markets, and the strong growth potential is fueling the future demand for logistics.
Gaw Capital Partners was named ‘Alternatives Investor of the Year: Asia’ at the PERE Awards 2021 after receiving the largest number of votes in a public ballot of the real estate industry. The company started to acquire, develop and manage modern logistics facilities with local partners in China since 2014. The logistics platform has circa 100 professionals with strong in-house expertise covering the full spectrum of business development, investment, construction, leasing and property management. Over the past eight years, the platform has invested in nearly 40 projects with circa 4 million sqm in China. Through funds under its management, Gaw Capital also acquired and managed logistics projects in Australia and Vietnam.
About Gaw Capital Partners
Gaw Capital Partners is a uniquely positioned private equity fund management company focusing on real estate markets in Asia Pacific and other high barrier-to-entry markets globally.
Specializing in adding strategic value to under-utilized real estate through redesign and repositioning, Gaw Capital runs an integrated business model with its own in-house asset management operating platforms in commercial, hospitality, property development, logistics, IDC and education. The firm’s investments span the entire spectrum of real estate sectors, including residential development, offices, retail malls, serviced apartments, hotels, logistics warehouses and IDC projects.
Gaw Capital has raised seven commingled funds targeting the Greater China and APAC regions since 2005. The firm also manages value-add/opportunistic funds in the US, a Pan-Asia Hospitality Fund, a European Hospitality Fund and a Growth Equity Fund, and it also provides services for credit investments and separate account direct investments globally.
Since 2005, Gaw Capital has commanded assets of US$34.3 billion under management as of Q2 2022.