Fosun Hive, Idera Launch Japan Logistics JV With Osaka Cold Chain Buy

Fosun Hive Capital Management has set up a joint venture with sister firm Idera Capital Management for the forward purchase of a cold storage logistics project in Greater Osaka.

The investment is the first in a pipeline of Osaka and Tokyo cold chain assets pre-identified by the managers on behalf of the JV, according to Singapore-based Fosun Hive and Japan’s Idera, both units of Chinese conglomerate Fosun International. Plans call for deploying JPY 15 billion ($100 million) in equity for the first tranche to build out a portfolio of purpose-built cold storage assets.

The partners described the Osaka project as an energy-efficient facility with a leasable floor area of more than 10,000 square metres (107,639 square feet). Scheduled for completion in the second half of 2025, the development is the first acquisition for the JV, in which Fosun Hive will act as fund manager and Idera as asset manager.

The two companies together are contributing 10 percent of the equity to the venture, with the remaining 90 percent held by a Hong Kong-based capital partner.

“The JV with a leading logistics partner is the first step in our Japan cold storage logistics journey — it is a testament to Idera’s ability in deal sourcing and execution as a trusted local partner for investors,” Fosun Hive capital markets head Adrian Low said in a release. “Together with the fund management capabilities of FHCM, we believe the JV will be well-positioned to capture the growing demand by tenants for cold storage solutions due to the strong favourable macro-tailwinds.”

Modern Assets Needed

No acquisition price or exact location was disclosed for the Osaka project, which is being sold by a listed Japanese developer. The finished asset will incorporate sustainable features like natural CO2 refrigerants to achieve carbon neutrality and is targeting a CASBEE rating of A, the partners said.

Takuya Yamada, CEO of Fosun Hive and chairman of Idera, cited estimates that over 30 percent of cold storage facilities in Japan are more than 40 years old, signalling an urgent need for modern assets. Barriers to entry are high in the segment because of capital spending requirements.

“Idera, with offices located in Tokyo and Osaka and a long and successful track record of working with institutional investors, is confident of delivering attractive risk-adjusted returns for this new strategy that we have identified,” Yamada said.

Shanghai-based Fosun International acquired Idera in 2014 from private equity firm Unison Capital for an undisclosed amount. The Japanese firm manages more than $4 billion in assets via private market funds, joint ventures and a listed J-REIT.

Global Attraction

Global investors continue to bet on the warehouse segment in Japan, where trades of income-earning logistics assets rose nearly 36 percent last year to $6.9 billion in value, according to MSCI Real Assets.

Around April of this year, Hong Kong private equity firm PAG acquired a two-warehouse logistics centre near the port of Nagoya from US developer Hines for a reported transaction value between JPY 65 billion and JPY 66 billion ($429 million and $435 million). Later that month, Houston-based Hines revealed its purchase of a fully leased Orix warehouse in Greater Osaka.

In May, Singapore’s Mapletree Investments announced the closing of its second Japan logistics development fund with a goal of achieving assets under management of over JPY 110 billion ($710 million) after full deployment and completion of projects. The unit of Temasek Holdings pointed to Asia’s second-largest economy as a haven during times of uncertainty.