Axa Joint Venture Buys Amazon Japan Warehouse
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The firm’s real estate investment arm has acquired the ¥39 billion ($369 million) Tokyo logistics facility in a joint venture with fund manager ESR.
The ESR-Axa vehicle purchased the 142,000-square-meter ESR Kuki, located in the north-eastern area of Saitama prefecture, from ESR-managed vehicle Redwood Japan Logistics Fund II (RJLF II) and co-investors.
The site is built to the highest specifications and meets the latest ESG standards (CASBEE A certification), and is energy-saving compliant. The asset benefits from a human-centric design with plentiful amenity space for workers, such as children’s daycare centres, and access to 241 parking spaces, the announcement said. According to real estate intelligence platform Mingtiandi, Amazon leased nearly half of the facility just seven months ago.
The demand for modern logistics space in this market is likely to remain strong due to tight supply and we are confident that this, coupled with the continued growth of e-commerce, will enable us to deliver secure income returns over the long term for our clients, alongside our joint venture partner, Laurent Jacquemin, Axa IM – Real Assets head of Asia-Pacific, said in a statement on Thursday.
The acquisition adds to Axa Investment Managers – Real Assets’ Japanese logistics platform which comprises a six asset portfolio acquired on behalf of clients last year for over ¥100 billion, as part of its Japanese joint venture with ESR established in 2018.
Axa said the joint venture will seek further investment and development opportunities diversified across Japan’s gateways cities, targeting large-high-quality modern logistics facilities that have the ability to deliver secure income returns over the long term.
Axa IM – Real Assets is part of Axa IM Alts, which has €146 billion of assets under management as of end of March 2020, across real estate, infrastructure, private debt, structured finance and hedge funds
Questions & Answers
Q.What was the purchase price of the Tokyo logistics facility?
What was the purchase price of the Tokyo logistics facility?
The Tokyo logistics facility was acquired for ¥39 billion. This translates to $369 million at the time of the transaction, as mentioned in the article.
Q.Which entities were involved in the joint venture that bought the warehouse?
Which entities were involved in the joint venture that bought the warehouse?
The joint venture vehicle that purchased the facility is a partnership between Axa's real estate investment arm and the fund manager ESR. They formed the ESR-Axa vehicle for this acquisition.
Q.What specific features does the Kuki facility offer for its workers?
What specific features does the Kuki facility offer for its workers?
The Kuki facility has a human-centric design, providing plentiful amenity space for its workers. This includes features like children's daycare centres and access to 241 parking spaces.
Q.Who was the seller of the ESR Kuki facility?
Who was the seller of the ESR Kuki facility?
The ESR Kuki facility was purchased from ESR-managed vehicle Redwood Japan Logistics Fund II (RJLF II). Co-investors were also part of the selling party for the asset.
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