- Dual sponsorship structure with comprehensive developer and general trading company
- Focus on investing in leading-edge logistics facilities
- Secure Financial Base
Dual sponsorship structure with comprehensive developer and general trading company
Support framework provided by Mitsui Fudosan and ITOCHU Group
Mitsui Fudosan’s sponsor support is strengthened by a dual sponsorship structure consisting of Mitsui Fudosan, a comprehensive developer, and ITOCHU Group, a general trading company.
MFLP-REIT aims to enhance unitholders' value through both external and internal growth by strengthening its property pipeline supply capability and leasing capabilities, leveraging the platforms and networks of both sponsors.
- External Growth
-
- Abundant pipeline enabled by the sponsor’s superior land sourcing ability through its broad client network
- Acquisition of leading-edge logistics facilities with value-added features, developed using the diverse expertise gained as a comprehensive developer and general trading company
- Expanding investments into new asset types such as cold storage facilities, mixed-use properties, and data centers
- Internal Growth
-
- Effective utilization of expertise gained as a comprehensive developer and general trading company in the management, operation, and leasing of logistics facilities
- Ability to directly approach tenant firms and logistics firms (3PL providers, etc.) without intermediaries, enabled by leveraging a broad client network
- Providing solutions to logistics challenges faced by tenants to strengthen long-term relationships
Sponsor pipeline
Mitsui Fudosan
As part of its strategic partnership with Mitsui Fudosan, MFLP-REIT has concluded a “ Right of first look and preferential negotiation agreement" with Mitsui Fudosan.
When Mitsui Fudosan sells “Right of first look and preferential negotiation agreement” properties where MFLP-REIT has indicated 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 predetermined period of time.
As of December 18, 2024
| Fiscal year of completion |
Property developed / operated （Note 1） |
Location |
Total floor area （Note 2） |
|---|---|---|---|
| FY2015 | MFLP Hino（75%） | Hino, Tokyo | 205,200㎡ |
| FY2019 | MFLP Funabashi Ⅱ | Funabashi, Chiba | 227,003㎡ |
| FY2021 | MFLP Funabashi Ⅲ | Funabashi, Chiba | 270,321㎡ |
| FY2021 | MFLP Ichikawa Shiohama Ⅱ（60%） | Ichikawa, Chiba | 166,099㎡ |
| FY2023 | MFLP Zama（41.5%） | Zama, Kanagawa | 133,932㎡ |
| FY2023 | MFLP•OGUD Osaka Torishima（50%） | Osaka, Osaka | 59,350㎡ |
| FY2024 | MFLP Yokohama-Shinkoyasu（51%） | Yokohama, Kanagawa | Approx. 136,641㎡ |
| （Note 1） | The ratio in brackets indicates the share of co-ownership or (quasi-) co-ownership of properties covered by the "Right of first look and preferential negotiation right agreement". |
|---|---|
| （Note 2） | Total floor area is based on the materials published by Mitsui Fudosan. The area for uncompleted properties is the planned area at the time of acquisition of the building confirmation certificate, and is subject to change. |
ITOCHU Group
As it works to expand its asset size, MFLP-REIT has the benefit of pipeline support (provision of priority information) from ITOCHU Corporation and ITOCHU Property Development and extensive external growth support through the ITOCHU Group network.
As of December 18, 2024
| Completion date (planned) |
Property under ownership / development |
Location |
Total floor area (planned) |
|---|---|---|---|
| FY2022 | i Missions Park Kasugai | Kasugai City, Aichi Prefecture | 15,402㎡ |
| FY2023 | i Missions Park Kuwana | Kuwana City, Mie Prefecture | 93,627㎡ |
| FY2023 | i Missions Park Yoshikawa Minami | Takahisa, Yoshikawa City, Saitama Prefecture | 17,918㎡ |
Focus on investing in leading-edge logistics facilities
3 key points to investment strategy
MFLP-REIT primarily invests in logistics facilities, with a particular focus on MFLP-branded and IMP-branded properties (leading-edge logistics facilities that meet the respective prescribed standard specifications for development by Mitsui Fudosan and ITOCHU Corporation and ITOCHU Property Development). This focus has been chosen in light of MFLP-REIT's goal of establishing a portfolio that emphasizes location, quality and balance.
- Emphasis onlocation
-
Investing in locations suitable for logistics
facilities by focusing on MFLP and IMP facilities MFLP-REIT acquires its logistics facilities which Mitsui Fudosan, as well as ITOCHU Corporation and ITOCHU Property Development develop, taking into consideration the following matters: access to transport nodes such as major roads and ports; broad-based location conditions; travel time to population centers; surrounding population; potential future environmental changes; and the supply-demand balance.
- Emphasis onquality
- Focused investment on MFLP and IMP facilities: Leading-edge logistics facilities with added valued for stakeholders MFLP-REIT considers the typical characteristics of MFLP and IMP facilities include not only high operational efficiency, convenience and safety but also additional facility specifications that apply the diverse needs of various stakeholders involved in logistics.
- Emphasis onbalance
- Ensuring balance by acquiring a wide variety of leading-edge logistics facilities operated by Mitsui Fudosan and ITOCHU Group We will establish a balanced portfolio by acquiring a wide variety of leading-edge logistics facilities developed for various logistics needs, tenant types and land sizes.
Types and features of leading-edge logistics facilities
Well suited to both distribution and storage
- Suitable for large plots of land
- Rampway enables direct access for trucks to multiple floors
- Suitable for medium-sized plots
- Enabled with a slope that provides direct access for trucks to some of the floors
- Other floors enabled with vertical conveyors
- Suitable for small/medium-sized plots
- Truck access via first floor berths
- Other floors enabled with vertical conveyors
Portfolio Strategy
Among the logistics facilities that MFLP-REIT primarily invests in, it has a particular focus on MFLP facilities (leading-edge logistics facilities developed by Mitsui Fudosan that meet the prescribed standard specifications) and IMP facilities (logistics facilities developed by ITOCHU Corporation and ITOCHU Property Development that meet the prescribed standard specifications). This focus has been chosen in light of MFLP-REIT's goal of establishing a portfolio that emphasizes location, quality and balance.
- Location
- Has good access to consumption areas, production bases, and traffic infrastructure; has a ready supply of workers
- Building
- Has a size that enables concentration and integration of logistics functions; offers features that enable efficient storage and cargo handling procedures
- Functions
- Has truck berths(*1), slopes(*2), rampways(*3) and vertical conveyors that offer sufficient conveying functionality.
- Environment
- Features considerations for the global environment as well as the interior environment (amenities for employees, etc.)
- Disaster prevention
- Ensures structural and facility safety against natural disasters such as seismic isolation or quake-resistance, as well as BCP(*4) features (emergency power generators, etc.)
| *1: | "Truck berths" refers to spaces where trucks are parked to load/unload cargo. |
|---|---|
| *2: | "Slopes" refers to sloping driveways that link the first floor to some of the upper floors. |
| *3: | "Rampways" refers to spiral driveways that link the first floor to the upper floors. |
| *4: | "BCP" stands for "business continuity plan." |
Investment area (acquisition price basis)
- Tokyo metropolitan area
Kansai area - At least 70%
- Other areas
- 30% or less
Usage and investment ratio (acquisition price basis)
- Logistics facilities
- At least 80%
- Industrial real estate
- 20% or less
Secure Financial Base
Financial Management with a Focus on Stability
MFLP-REIT will manage its finances stably, including funds raised through the issuance of new investment units and borrowings, and at the same time it will aim to secure stable distribution levels and efficient cash management for distributions through continuous distributions in excess of earnings based on cash flow (FFO: Funds From Operations).
| ・ | With regard to interest-bearing debt, we will focus on appropriate management of the long-term debt ratio and fixed rate ratio in consideration of refinancing risk and interest rate risk, and consider how to optimize financing through diversification of maturity dates and other measures. |
|---|---|
| ・ | Our basic policy for LTV is to maintain a conservative level. We intend to target a level of 40–50% in the medium and long term. |
| ・ | We will aim to establish a stable bank formation centered on funding from major domestic financial institutions. |
| ・ | We will also consider issuing new investment units and investment corporation bonds, based on a comprehensive view of future funding needs, changes in investment unit prices, and financial market trends. |