Mitsui Fudosan REIT Selling Two Greater Tokyo Sheds for $240M

Mitsui Fudosan Logistics Park has agreed to sell two Greater Tokyo warehouses, including a large facility in Chiba prefecture’s Inzai, for a total of JPY 35.4 billion ($240 million).

The Tokyo-listed REIT will offload i Missions Park Inzai for JPY 33.9 billion and the smaller Logitres Sano in Tochigi prefecture for JPY 1.5 billion, according to a filing. The buyer of both assets is a non-related domestic firm, said the manager of the trust co-sponsored by Mitsui Fudosan, Japan’s largest developer, and trading giant Itochu.

The Inzai mega-shed contains 110,516 square metres (1.2 million square feet) of leasable area and is changing hands at a 16.5 percent premium to its assumed book value of JPY 29.1 billion, with the proceeds to be allocated to future property acquisitions.

The sales “aim to capitalise on the currently active logistics real estate market by selling the assets at prices significantly exceeding their assumed book values,” said MFLP’s manager.

Fully Occupied

The five-storey i Missions Park Inzai was completed in 2018 and is fully leased to a single tenant, while the 2023-built Logitres Sano’s 7,144 square metres of leasable area is also wholly occupied by one tenant.

The Inzai property is about 40 kilometres (25 miles) east of central Tokyo near National Route 16, giving it a coverage area including the eastern part of the capital and central areas of Chiba and Saitama prefectures.

No rent figures were disclosed. For i Missions Park Inzai, the buyer is scheduled to pay a lump sum equal to a 30 percent interest on 31 July and make another payment of the remaining 70 percent on 30 September, a date when the full consideration for Logitres Sano is also to be paid.

Upon completion of the divestments, MFLP’s portfolio will comprise interests in 45 properties with a total acquisition value of JPY 546.1 billion ($3.7 billion).

Supersized Trust

The disposals come after Mitsui Fudosan Logistics Park last November completed its merger with Itochu Group-sponsored Advance Logistics Investment Corporation to create Japan’s third-biggest industrial REIT by asset size, trailing Nippon Prologis REIT and GLP J-REIT.

As the surviving entity, MFLP absorbed 19 ADL properties, including three anticipated acquisitions of i Missions Park assets from Itochu’s pipeline. The defunct ADL’s manager, Itochu REIT Management, is the principal unitholder of MFLP with 23 percent voting rights.

The trust’s top asset by acquisition price and floor area is MFLP Ibaraki in suburban Osaka. Spanning 230,435 square metres, the six-storey warehouse was built by Nippon Steel & Sumikin Engineering in 2017 and acquired by MFLP in 2020 for JPY 58.9 billion.

In Greater Tokyo, the REIT’s most spacious asset is the 205,200 square metre MFLP Hino in the western end of the capital’s metro area. The five-storey shed was built by Obayashi Corporation in 2015 and acquired by MFLP in 2019 for JPY 12.5 billion.