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Investment Policy

We intend to mainly invest in modern logistics facilities, aiming to produce stable profits in the medium to long term and to steadily grow our portfolio. Further, we plan to establish a stable portfolio by investing in a diversified area, with a focus on the Tokyo metropolitan area and the greater Osaka area. When making an investment decision, we mainly take into account the location, scale and function of the relevant property.

Target Portfolio Areas

We plan to invest primarily in logistics facilities located near airports, trading ports and other areas where traffic routes meet, and in the logistics hubs of production or consumption areas, taking into account the geographical diversification of the portfolio, based on population distribution, overall regional production and regional logistics dynamics.

Investment Percentage by Location (based on acquisition price)

Location
Investment Percentage
Tokyo metropolitan area
50 - 70%
Greater Osaka area
20 - 40%
Other
5 - 20%

Property Selection

We plan to invest mainly in modern logistics facilities that produce stable profits.
we will also invest in real estaterelated assets which are real estate ancillary to or related to logistics facilities or real estate securities backed by land with leasehold interest on which a logistics facility currently exists, or land with leasehold interest on which building a logistics facility in the future is expected to be possible by carrying out redevelopment, from the standpoint of achieving further income and growing the portfolio.
Our specific investment criteria are as follows:

Investment in in modern logistics facilities

“Stabilized” logistics
facilities
We intend to invest only in the properties that, at the time of our decision to purchase such facility, have reached an occupancy rate of at least 93% or is at least one year old from the date when the construction of such facility was completed.
Scale
We intend to invest mainly in large-scale leasable logistics facilities with gross floor area of 10,000㎡ or more.
Functionality
We intend to focus on modern logistics facilities with the following features, among others, which in our view indicate high functionality: more than 50% of the gross floor area with a floor-to-ceiling height of 5.5 meters or more and a floor load tolerance of 1.5 tons/㎡ or more.

We will also consider functions such as significant inter-pillar space, advanced truck berths (large truck loading yards, high-floored truck berths, dock levelers), berths designed for efficient shipping (berths on both sides, berths on each floor, etc.), rampways, office spaces, high-capacity elevators, amenity spaces for employees (locker rooms, lounge, stores, etc.), high-intensity lighting in facilities (suitable for inside work), highly quake-resistant structures, 24-hour security, advanced environmentally-friendly features.

Investment in land with leasehold interest

Occupancystatus
Stable operation is expected after completion.
Risk analysis and management
Risks related to real estate development, such as the following, are appropriately analyzed and managed: development risk, approval risk, completion risk, tenant risk, price (fluctuation) risk, risk of interest rate fluctuation during development, and large-scale natural disaster risk.
Investment method
The investment method is appropriate, based on the nature of redevelopment.
Business progress
Business progress of the redevelopment is appropriately monitored.
Impact on the entire portfolio
If the redevelopment does not immediately generate cash flows, there will be no significant impact on the entire portfolio.
Probability of acquisition
There is a high probability of acquisition of the logistics facility, such as expectation of obtaining right-of-first-look of said facility.
Related Link
Portfolio Map
Portfolio List
Portfolio Data

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