CBRE IM Raises $2.1B for Asia Value-Add Fund Focused on Logistics

CBRE Investment Management has closed its seventh Asia Pacific value-add real estate fund with more than $2.1 billion in equity commitments, as the firm prepares to deploy capital into logistics-led strategies across the region.

The fund, Asia Value Partners 7, will target build- and reposition-to-core opportunities in developed APAC markets, with logistics set to account for at least 80 percent of deployed capital, Manhattan-based CBRE IM said Tuesday in a release. The vehicle closed with over $1.8 billion in equity commitments alongside an additional $250 million in co-investment capital, exceeding its original fundraising target of $1.5 billion.

AVP 7 has secured three investments to date — including a Greater Tokyo logistics project — with further support expected from an advanced pipeline that will drive deployment throughout 2026, said CBRE IM, which has completed 139 logistics investments across APAC totalling 9.5 million square metres (102 million square feet) with a cumulative asset value of $14.7 billion.

“The APAC region continues to offer compelling opportunities for value creation,” said Adrian Baker, president and CIO of APAC direct real estate at CBRE IM and portfolio manager for the fund series. “We are unlocking value in Japan in particular, targeting well‑located standing assets below replacement cost and applying our operating expertise to develop and reposition high‑demand logistics facilities.”

Tokyo Bay Development

The Greater Tokyo asset to be developed, known as Ichikawa Logistics Center 3, is situated less than 20 kilometres (12 miles) from central Tokyo in an industrial cluster directly opposite Ichikawa Shiohama rail station in Chiba prefecture. The bayfront site offers strong last-mile connectivity in a submarket where vacancy stands at zero, according to Baker.

The manager is purchasing the land from an undisclosed vendor at a discount to independent valuation and plans to build a 109,631 square metre multi-level logistics facility with double-access ramps. CBRE IM is in advanced discussions with prospective occupiers and aims to secure a substantial pre-commitment ahead of construction, positioning the project to capture sustained demand for modern logistics space in the Tokyo Bay area.

Including leverage, AVP 7 is expected to have total purchasing power of more than $5 billion to be deployed over a 36-month period. CBRE IM did not identify specific partners in the fund, saying only that it received strong support from 15 new and existing institutional investors across the US, Europe, the Middle East and APAC. Backers of previous funds in the series have included sovereign wealth funds and pension funds, including the State Board of Administration of Florida.

“Completing the fundraising in just 15 months with positive assessments from several leading consultants underscores the strong conviction investors have in our strategy and platform,” said Yilan Koh, APAC direct head of product development and operations at CBRE IM.

APAC Sheds in Style

The close of AVP 7 comes as global capital continues to rotate towards APAC logistics, with fund managers targeting value-add strategies to capture rental growth and modernisation demand across key markets.

In Japan, US finance giant Goldman Sachs is raising a $500 million value-add real estate fund targeting acquisitions in sectors including logistics. In Singapore, Canada’s Brookfield announced in December that it would buy an eight-asset industrial portfolio from ESR REIT for S$338 million ($262 million).

Macquarie Asset Management-backed Unified Industrial has also been building scale in the sector, first agreeing with Boustead Singapore to create a pan-Asia logistics and industrial platform with $3.5 billion in assets under management, then moving to list an industrial REIT on the Singapore Exchange seeded with 23 properties valued at S$1.9 billion.

Another MAM venture, Australia’s LogiSpace, on Monday announced its formal launch with plans for a A$238 million ($167 million) logistics estate in western Sydney. The platform aims to connect capital partners with occupiers through a development approach focused on investor returns and tenant needs.