Singapore sovereign wealth fund GIC has added a major asset to its expanding Japanese portfolio with its acquisition of a state-of-the-art logistics facility in Yokohama, part of the Greater Tokyo metropolitan area.

The acquisition, GIC says, underscores its confidence in Japan’s logistics sector, fuelled by the rise of e-commerce and the need for efficient supply chains. Financial details of the purchase have not been made public.

The facility, developed by Japanese real estate firm Daiwa House Industry, boasts cutting-edge logistics industry features and is fully occupied, with tenants benefiting from its advanced design, which includes seismic-base isolation for enhanced earthquake resistance.

The four-storey property, which spans over 126,000 square metres, is one of Daiwa House’s largest projects to date and was completed in 2022.

This latest acquisition follows GIC’s 2023 purchase of several other logistics facilities developed by Daiwa House across Japan, including significant properties in Greater Nagoya, Osaka and Greater Fukuoka.

In April of last year, GIC invested more than US$800 million to fully acquire a portfolio of six logistics facilities in Japan from alternative asset manager Blackstone.

The facilities are well-located, spanning regional logistics hubs with convenient transportation access via major roads and expressways. The assets, according to GIC, provide strong and resilient cash flow from their high weighted average occupancy of 99%.

The fund’s sustained investments, it says, highlights its long-term commitment to Japan’s real estate market, particularly in the logistics sector, where demand for modern, efficient space is expected to continue rising.