PAG Buys Two Nagoya Warehouses From Hines for Reported $429M

Hong Kong private equity firm PAG has acquired a two-warehouse logistics centre near Japan’s 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).

The larger shed, which Hines built after acquiring the site in November 2021, has more than 218,000 square metres (2.3 million square feet) of space across four floors, making it one of the largest warehouse transactions in Japan, the Houston-based builder and fund manager said Tuesday in a release. The sale of that warehouse closed last week after construction was completed, while the deal for the smaller, pre-existing 25,000 square metre shed closed last year.

“This transaction represents Hines’s ability to execute large-scale developments and deliver liquidity for our clients in a turbulent global market,” said Japan country head Jon Tanaka.

Bloomberg broke the news of the deal on Tuesday, citing people familiar with the matter. Representatives from Hines were unable to confirm the reported transaction price when reached by Mingtiandi. PAG, led by co-founder and executive chairman Weijian Shan, declined to comment.

First Japan Warehouse Exit

The two buildings at Yatomi Distribution Center in Nagoya’s Yatomi city serve both ambient and cold storage users, including last-mile logistics providers and regional distributors.

The complex, which is not to be confused with the ESR Yatomi Distribution Center in the same area, is near Japan’s largest and busiest port and was the second-ever acquisition in the country for Hines, after the firm picked up a Yokohama office tower in November 2021 on behalf of its flagship pan-Asian fund.

The existing 25,000 square metre building was vacated by the previous owner and later fully leased up by Hines to a third-party logistics operator. Hines broke ground on the new building in March 2022 and completed Yatomi Distribution Center in February of this year.

After opening its central Tokyo office in 2017, Hines Japan expanded in 2020 and now carries out development, acquisitions and asset management. The Tokyo-based team has acquired or developed more than 300,000 square metres across all property segments in six Japanese cities, according to the privately held firm.

“Japan’s logistics market continues to be an attractive investment target for Hines’s expansion in Asia Pacific,” Tanaka said.

Thematic Investment

PAG’s previous Japan deals include the acquisition of Huis Ten Bosch, a Dutch-inspired theme park in Nagasaki prefecture, for a reported JPY 90 billion ($655 million) in 2022.

That same year, the Hong Kong-based firm sold the Ameyoko Center Building in Tokyo for $53 million to a Japanese buyer and acquired a solar project development platform in Japan from NASDAQ-listed photovoltaic producer First Solar.

PAG in late 2020 sold a portfolio of commercial and residential properties, primarily in Tokyo and Osaka, to private equity giant Blackstone for about $1 billion.