Mitsui Fudosan's Logistics Facilities Business
The logistics facilities business and logistics REIT sponsored by comprehensive developer Mitsui Fudosan
With the establishment of the Logistics Properties Business Division in April 2012, Mitsui Fudosan fully launched itself into the logistics facilities business. Mitsui Fudosan has now established MFLP-REIT and set forth the evolution of a business model for a business that grows together with the real estate investment market. In "Innovation 2017 Stage II (2015-2017)," the Mitsui Fudosan Group's medium-term business plan for FY2015 through FY2017, released in May 2015, Mitsui Fudosan positions the expansion of the logistics facilities business and the implementation of a model for joint value creation with investors as two pillars of its eight growth strategies.
- Key measures of the medium-term business plan "Innovation 2017 Stage II"
- Formulated a business statement for the logistics facilities business
"Connecting Values Together with Customers and Creating New Value Together with Customers"
As a partner in developing solutions for our tenants, we forge connections among a wide variety of people, goods and ideas, taking on the challenge of creating value beyond conventional boundaries. We contribute to making modern life and society more fulfilling for all.
Mitsui Fudosan's strength in the logistics facilities business
With the establishment of the Logistics Properties Business Division in April 2012, Mitsui Fudosan fully launched itself into the logistics facilities business. It made investments in eight logistics facilities with a total area of 600,000 square meters by fiscal 2012 and a further four properties with a total area of 320,000 square meters in fiscal 2013. Since then, the number of logistics facilities developed and managed by Mitsui Fudosan has expanded to a total of 22 properties, including 10 properties in operation and 12 properties under or scheduled for development, with a gross floor area of around 2 million square meters.
Mitsui Fudosan also announced in March 2016 that its cumulative investment in the logistics facilities business since it launched the business in April 2012 is expected to reach approximately \300 billion.
|Note:||The above chart is based on materials released by Mitsui Fudosan as of March 24, 2016. The "22 properties; \300 billion" of cumulative investments include 12 properties under development or to be developed and the amount of (planned) investments as of the same date. Properties to be developed include those that were targeted or planned by the Mitsui Fudosan Group as of June 2016. Such developments are subject to change or cancellation. Furthermore, the timing of the completion of the above investments had not been determined as of June 2016. Moreover, MFLP-REIT does not guarantee or promise the realization of the plans. The "22 properties; \300 billion" of cumulative investments include Tokyo Rail Gate EAST; however, Mitsui Fudosan has no plans for acquiring the property as of July 1, 2016.|
Locating projects (generation of investment business opportunities)
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.
In developing new logistics facilities, Mitsui Fudosan carefully selects suitable locations by making use of a broad range of site-related information gathered from all over the country via its various developments undertaken in its office building, retail facility and housing businesses, in addition to that acquired via its logistics facilities business.
In tenant leasing of logistics facilities, Mitsui Fudosan, as a comprehensive real estate company, has the advantage of being able to directly approach tenant firms, that is, end users and/or logistics firms (3PL providers, etc.), based on the broad and strong client network that the Mitsui Fudosan Group has developed.
|Source:||Prepared by the Asset Management Company based on "Investor Presentation Material for Consolidated Financial Results for the Year Ended March 31, 2016" and "Summary of Consolidated Financial Results for the Year Ended March 31, 2016" released by Mitsui Fudosan, and materials dated March 24, 2016.|
Case study of Japan Freight Railway's selection of Mitsui Fudosan as its development business partner
– Joint venture in Tokyo Rail Gate EAST –
Japan Freight Railway Company chose Mitsui Fudosan as its development partner and entered into a basic agreement for the development and construction of one of Japan's largest logistics facilities with a direct link to a freight railway line inside the Tokyo Freight Terminal (Shinagawa, Tokyo), the largest freight terminal in Japan. Mitsui Fudosan was highly rated by Japan's largest freight operator for its development achievements in the logistics facilities business and its competitive edge in leasing and property management. As a result, Mitsui Fudosan will undertake the development operation, draft the development plan, and secure tenants for this project. Upon completion, Mitsui Fudosan will master lease the facility, etc.