JD Property Enters Japan Logistics Market in GLP Shed Buy With Alyssa Partners

China’s JD Property has completed its first acquisition in Japan’s logistics sector, picking up two warehouses with a total gross floor area of 103,000 square metres (1.1 million square feet), with Tokyo-based residential specialist Alyssa Partners acting as asset manager.

Located in Chiba and Nagoya, the pair of properties have an appraised value of JPY 35 billion ($220 million) combined, according to market sources who spoke to Mingtiandi. The sources identified the seller as industrial giant GLP.

The deal marks the maiden Japan investment for the infrastructure arm of Chinese e-commerce giant JD.com. Tokyo-based Alyssa, led by managing partner, CEO and co-CIO Chedli Boujellabia, is also getting its first taste of Japan’s warehouse market, according to a release by the two companies on Tuesday.

“The logistics market in Japan continues to attract global institutional investors seeking defensive strategies at attractive risk adjusted returns,” Boujellabia said. “Both properties benefit from strong tenants’ demand as a result of the growing e-commerce sector, demonstrated by their full occupancy.”

JLL, CBRE Marketing Portfolio

The partners did not disclose the names or precise locations of the warehouses, saying only that the facilities are less than four years old, fully leased and situated within important distribution hubs.

Market sources said GLP hired brokers JLL and CBRE to run a marketing process for four logistics properties in Japan, with the two target assets representing half of that portfolio. JLL is understood to have introduced JD Property to the opportunity, while CBRE had not responded to inquiries at the time of publication.

Richard Law, head of Asia Pacific at JD Property, described the deal as an important step in growing the regional business of the company, which is backed by private equity firms Warburg Pincus and Hillhouse. In September, JD Property announced its acquisition of the LiFung Centre in Hong Kong from M&G Real Estate for HK$1.8 billion ($232 million) in the city’s biggest en bloc industrial transaction of the year.

“Japan logistics properties continue to benefit from robust demand arising from growth in e-commerce and industrial production,” Law said. “This investment aligns with our strategy to capitalise on long-term growth trends in Japan. We will continue to explore additional opportunities to expand our presence and capabilities in Japan and the Asia Pacific region.”

Strength to Strength

The inaugural warehouse deal is another coup for Alyssa’s Boujellabia, who told Mingtiandi’s inaugural Tokyo Forum last month that the company planned to maintain its focus on the living sectors while exploring new opportunities in logistics and data centres.

Mingtiandi reported last week that Alyssa had acquired a portfolio of 13 apartment buildings in Japan under a partnership with an undisclosed global institutional investor. Market sources familiar with the deal said the portfolio was acquired for close to JPY 30 billion.

The buy increased Alyssa’s residential portfolio to 116 properties and more than 5,000 apartment units across major Japanese cities with a value in excess of JPY 160 billion. The firm manages JPY 245 billion across residential, hotel, office, logistics and retail assets.

Alyssa invests exclusively in Japan and has formed joint ventures with heavyweights including AXA IM, PGIM Real Estate and private equity titan Blackstone.