Key facts
- Ares Management raised 612 billion yen ($4 billion) for its fifth Japan logistics development fund.
- The fund is Ares' largest closed-end institutional fundraise to date.
- It will invest in modern logistics facilities in key Japanese metropolitan markets.
- Canada Pension Plan Investment Board committed 150 billion yen as a cornerstone investor.
- The fund has a total investment capacity of 1.7 trillion yen.
Ares Management's real estate arm has successfully raised 612 billion yen, equivalent to $4 billion, for its fifth Japan logistics development fund. This marks the unit's largest closed-end institutional fundraise to date and is nearly 50% larger than its 2021 predecessor. The fund, named Japan Logistics Development Partners V LP, closed at its hard cap and will focus on developing modern logistics facilities in key Japanese metropolitan markets such as Greater Tokyo, Osaka, and Nagoya.
Demand for modern logistics space in Japan is growing, with CBRE projecting that rents for large multi-tenant facilities in the four major metropolitan areas could rise by late 2027. The Ares fund attracted capital from a diverse range of global investors, including pension funds, sovereign wealth funds, insurers, and financial institutions from North America, Asia-Pacific, Europe, and the Middle East. A cornerstone investor, Canada Pension Plan Investment Board, which has backed every Japan logistics fund since 2011, committed 150 billion yen.
Gilles Chow, managing director and head of real estate Asia Pacific at CPP Investments, noted the continued value in modern logistics infrastructure, citing resilient demand, evolving supply chains, and positive rental growth outlooks. The fund possesses a total investment capacity of 1.7 trillion yen and has already committed to projects valued at approximately 450 billion yen. Ares' global logistics real estate platform, Marq Logistics, will handle the development and operation of these assets, managing a significant portfolio in Japan and globally.