Heitman Taps Local Partners to Buy Mega-Shed, Nine-Asset Residential Portfolio in Fukuoka

US fund manager Heitman has completed two real estate buys in Fukuoka, picking up a large warehouse and a portfolio of nine residential assets in the biggest city on southern Japan’s Kyushu island.

Heitman teamed with capital partners Mitsubishi HC Capital Realty and SMFL Mirai Partners on the purchase of the Tosu Central Distribution Center, the Chicago-based firm said Tuesday in a release. Heitman also tied up with the unit of Sumitomo Mitsui Finance and Leasing to acquire the 316-unit housing portfolio, it said in a separate announcement.

Tosu Central Distribution Center comprises 58,433 square metres (628,968 square feet) of leasable space near the intersection of the Kyushu, Nagasaki and Oita expressways, with pillarless truck berths for side-by-side loading to reduce wait times, according to Heitman.

“Tosu is centred around a high level of advanced manufacturing industry growth and distribution activity, extending from Fukuoka across Kyushu,” said Brad Fu, head of Asia Pacific acquisitions at Heitman. “We believe that the Tosu Central Distribution Center will serve the needs of a wide base of users that have continued to expand their operations in this area.”

Landmark Deal

Heitman acquired its new residential properties in an off-market transaction that it called the largest multi-asset residential portfolio buy in Fukuoka’s history.

Located in key submarkets including Hakata and Hirao, the properties feature a mix of studio, one-, two- and three-bedroom units catering to young professionals and growing families, Heitman said.

The fund manager hailed Fukuoka’s proximity to major Asian hubs, including Busan and Shanghai, and high population growth rate among major Japanese cities.

“We have strategically focused on building our investments in scale across the Fukuoka market,” Fu said. “In addition to Heitman’s acquisitions in other sectors within Greater Fukuoka, this portfolio contributes to our long-term positioning in this pivotal market, which is underpinned by favourable demographics, affordability, and sizable inbound industry investment.”

Heitman didn’t disclose the sellers, transaction prices or locations of the newly acquired assets, saying only that the Tosu warehouse was purchased on behalf of managed funds and that the residential portfolio was secured under the firm’s global core-plus strategy. 

Growing Footprint

Heitman is expanding its Japan footprint after acquiring three apartment buildings in Osaka in late 2024 under its global core-plus strategy. The investment in the 257-unit portfolio followed the firm’s entry into the Japanese residential market in late 2021 with the acquisition of eight multi-family properties totalling 329 units in Tokyo.

For SMFL Mirai, the pair of deals represent a quick start to 2026 after the firm’s takeover of asset manager Kenedix in October. The transaction saw Asian industrial giant ESR sell its remaining 30 percent stake in Kenedix for an undisclosed price.

The Kenedix buyout was preceded by SMFL Mirai’s acquisition of industrial builder CRE Inc last March in a JPY 21.7 billion ($140 million) privatisation, with CRE delisting from the Tokyo Stock Exchange in May.