Asset manager M&G has acquired a 40% interest in a prime logistics facility in Japan’s Nagoya area, worth approximately 10 billion yen (US$91 million), on behalf of its core Asia-Pacific property portfolio managed by Richard van den Berg.

ESR Yatomi Distribution Centre, built in 2018, is strategically located within six kilometres of Nagoya Port and 15 kilometres from its central business district. Excellent access to major expressways highlights its suitability as a logistics location, supported by access to labour from the surrounding residential areas.

The centre is a CASBEE A and LEED Gold ratings facility with strong environmental, social and governance attributes, including solar panels on the roof of the building and LED lighting throughout the property. It also has a child day care centre and a staff lounge for employees. It is a modern four-storey facility with a total floor space of 95,290 square metres and 265 car bays.

The property is fully leased to six tenants providing a diverse and sustainable income stream. Nagoya’s logistics market is supported by a robust manufacturing sector and an undersupply of modern facilities, which has led to strong occupier demand. The acceleration in structural trends, including increasing e-commerce adoption and robust market fundamentals is expected to support continued growth in the area’s logistics sector.

“Investor demand for Japan’s logistics properties close to key metropolitan cities remains resilient with the growth of e-commerce,” van den Berg says. “This deal follows our recent acquisition of ESR Ichikawa Distribution Centre and increases our Japanese logistics portfolio to four properties allowing us to generate stable returns for our investors.”