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Ares Management Closes $4 Billion Japan Logistics Fund in Unit's Largest Fundraise
Ares Management's real estate arm has successfully closed its fifth Japan-focused logistics development fund at its hard cap, securing 612 billion yen ($4 billion) in commitments. The fundraise marks the largest closed-end institutional fund for the unit to date, signaling strong investor appetite for modern logistics assets in the region.
Fund Details and Investor Demand
The fund, named Japan Logistics Development Partners V LP, is nearly 50% larger than its predecessor, which closed in 2021. According to a statement from Ares, it attracted capital from a diverse group of global institutional investors, including pension funds, sovereign wealth funds, and insurers across North America, Asia-Pacific, Europe, and the Middle East.
The Canada Pension Plan Investment Board (CPP Investments) served as a cornerstone investor, committing 150 billion yen. CPP Investments has been an investor in every iteration of Ares' Japan logistics fund since the series launched in 2011.
"We continue to see value in modern logistics infrastructure supported by resilient demand, evolving supply chains and a positive outlook for rental growth," said Gilles Chow, Managing Director and Head of Real Estate for Asia Pacific at CPP Investments.
AdStrategy and Market Outlook
The fund will focus on developing modern logistics facilities in Japan's primary metropolitan markets, including Greater Tokyo, Greater Osaka, and Nagoya. This strategy aligns with market forecasts from real estate services firm CBRE, which projects that rents for large multi-tenant logistics facilities will rise in Japan's major metropolitan areas by late 2027 due to growing demand.
Ares stated the fund has a total investment capacity of 1.7 trillion yen and has already committed to projects representing approximately 450 billion yen in total investment. The assets will be developed and operated by Marq Logistics, Ares' global logistics real estate platform, which managed about 120 million square feet in Japan as of June 30.
As of June 30, Ares Management had more than $671 billion in assets under management, with its Ares Real Estate group managing about $121 billion.
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