External growth based on the growth potential and extensive pipeline of Mitsui Fudosan's logistics facilities business
MFLP-REIT aims for continuous growth by focusing on MFLP facilities, utilizing the right of first look and preferential negotiation based on "Right of first look and preferential negotiation agreement" that was concluded with Mitsui Fudosan, which boasts high growth in the logistics facilities business.
Right of first look and preferential negotiation agreement and external growth of MFLP-REIT
As part of its strategic partnership with Mitsui Fudosan, MFLP-REIT has concluded "Right of first look and preferential negotiation agreement" with Mitsui Fudosan. When Mitsui Fudosan sells properties defined in "Right of first look and preferential negotiation agreement" for which MFLP-REIT notifies its intention to acquire, MFLP-REIT is offered priority in receiving information, in principle, and has the right of first look and preferential negotiation with Mitsui Fudosan for a certain period of time.
Major properties developed or operated by Mitsui Fudosan
|Property developed/operated||Location||Total floor
"Right of first
||MFLP Yokohama Daikoku||Yokohama, Kanagawa||100,530 m²||●（50%）||−|
|GLP/MFLP Ichikawa Shiohama||Ichikawa, Chiba||105,019 m²||●（50%）||−|
|MFLP Yashio||Yashio, Saitama||40,728 m²||●||−|
|FY2014||MFLP Kuki||Kuki, Saitama||73,153 m²||●||−|
|MFLP Sakai||Sakai, Osaka||125,127 m²||●（20%）||●（80%）|
|MFLP Funabashi Nishiura||Funabashi, Chiba||30,947 m²||●||−|
|MFLP Atsugi||Aikou, Kanagawa||40,942 m²||●||−|
|MFIP Inzai||Inzai, Chiba||40,478 m²||●（20%）||●（80%）|
|FY2015||MFLP Hino||Hino, Tokyo||204,805 m²||−||●|
|MFLP Kashiwa||Kashiwa, Chiba||31,242 m²||●||−|
|FY2016||MFLP Funabashi Ⅰ||Funabashi, Chiba||198,390 m²||−||−|
|MFLP Fukuoka Ⅰ||Kasuya, Fukuoka||32,477 m²||−||●（81%）|
|MFLP Hiratsuka||Hiratsuka, Kanagawa||33,106 m²||−||●|
|MFLP Komaki||Komaki, Aichi||42,514 m²||−||●|
|FY2017||MFLP Inazawa||Inazawa, Aichi||73,364 m²||−||●|
|MFLP Ibaraki||Ibaraki, Osaka||241,952 m²||−||●|
|MFLP Atsugi Ⅱ||Isehara, Kanagawa||approx. 54,812 m²||−||●|
|FY2018||MFLP Hiratsuka Ⅱ||Hiratsuka, Kanagawa||approx. 43,400 m²||−||−|
|FY2021||Tokyo Rail Gate East(*8)||Shinagawa, Tokyo||161,000 m²||−||−|
|To be confirmed||Kawagoe Project||Kawagoe, Saitama||To be confirmed||−|
Flow regarding provision of right of first look information
Example of properties defined in "Right of first look and preferential negotiation agreement" (MFLP Hino)
MFLP Hino is one of the largest leading-edge logistics facilities in the Tokyo metropolitan area, with a total leasable area of approx. 187,000 square meters and a standard floor area of approx. 37,000 square meters. It features a double rampway that allows freight trucks direct access to each floor. Situated roughly 5 kilometers from the Hachioji IC of the Chuo Expressway, the facility is well located, allowing for speedy delivery to the Tokyo metropolitan area and the rest of the country as well as offering a ready supply of workers. It is fitted with a variety of equipment and has excellent specifications. In addition, it has a seismic isolation structure to protect both workers and cargo and prevent the disruption of facility operation.
Properties defined in "Right of first look and preferential negotiation agreement"(*7)
|*1:||Indicates development/operation properties belonging to Mitsui Fudosan's logistics facilities business (includes properties not completed as of January 31, 2017; also includes MFIP facilities). The development of uncompleted properties is subject to delay, change or cancellation for various reasons.|
|*2:||Please refer to the sections titled, "Mitsui Fudosan's Logistics Facilities Business", "Mitsui Fudosan's strength in the logistics facilities business", and "Trajectory of growth of Mitsui Fudosan's logistics facilities business" for details of cumulative investments.|
|*3:||Indicates the number of properties and cumulative sum of total floor area, including properties defined in "Right of first look and preferential negotiation agreement".|
|*4:||For MFLP Yokohama Daikoku, the year in which operations started is indicated. This property was completed in fiscal 2009.|
|*5:||Indicates the area recorded in the registry for completed properties, the area stated on the Building Certificate for uncompleted properties that obtained a Building Certificate, and the area stated in the material published by Mitsui Fudosan for all other properties. The area for uncompleted properties is the planned area at the time of acquisition of the Building Certificate or at the time of publication, and is subject to change.|
|*6:||The ratio in brackets indicates the share of quasi-co-ownership for the acquired asset.|
|*7:||Includes properties defined in "Right of first look and preferential negotiation agreement". The ratio in brackets indicates the share of co-ownership or quasi co-ownership of properties that may be sold by Mitsui Fudosan to MFLP-REIT. Among such properties, there are no properties that MFLP-REIT has decided to acquire as of January 31, 2017, except for acquired assets MFLP Sakai and MFIP Inzai.|
|*8:||Mitsui Fudosan was entrusted with the development, drafting of the development plan, and acquisition of tenants for Tokyo Rail Gate EAST. After completion of the project, Mitsui Fudosan will offer master lease services, etc. As of January 31, 2017, Mitsui Fudosan has no plans to acquire the property.|
|*9:||The images of properties under development and to be developed are conceptual drawings as of January 31, 2017.|
- Related link
- Investing in locations suitable for logistics facilities by focusing on MFLP facilities
Property acquisition utilizing the comprehensive strength of Mitsui Fudosan, a comprehensive real estate company
Investing in MFIP (Mitsui Fudosan Industrial Park) facilities
Although MFLP-REIT focuses on logistics facilities, in order to take advantage of the current trend in which IT (Information Technology) has rapidly gained a supporting role in the development of logistics facilities and industrial real estate, MFLP-REIT will utilize property information on real estate development or sales delivered via Mitsui Fudosan's client network to invest in industrial real estate, diversify its portfolio, and improve growth. As a first step, MFLP-REIT will acquire MFIP Inzai, a data center developed by Mitsui Fudosan.
Acquiring logistics facilities developed by third parties
In addition to acquiring facilities developed by Mitsui Fudosan, MFLP-REIT plans to aggressively acquire logistics facilities developed by third parties other than Mitsui Fudosan. In doing so, it will use the Mitsui Fudosan Group's network as well as the Asset Management Company's channels and will make acquisitions only after fully examining the capacity of the target property to satisfy individual investment standards as well as its impact on the portfolio.
Investing in overseas real estate
MFLP-REIT makes it possible to acquire overseas real estate pursuant to the Articles of Incorporation to meet mid- to long-term global needs.
Acquiring properties through proposal of corporate real estate (CRE) strategies by Mitsui Fudosan
By making use of the Platform (business foundation) and broad client network it has developed as a comprehensive real estate company, Mitsui Fudosan stimulates the potential needs of client firms in the area of real estate by proposing corporate real estate (CRE) strategies and offering real estate consultancy. It also offers advisory services on CRE strategy, such as providing solutions for real estate development and sales that meet the needs of its client firms. By seeking close cooperation with Mitsui Fudosan, MFLP-REIT believes that through the proposal of CRE strategies it can achieve external growth as well as the further diversification and stabilization of its portfolio.