Fortress Investment Group LLC, which has $41.7 billion of assets under management, said there are investment opportunities in the Japanese real estate market because some banks may sell properties as loans come due.

“A fair portion” of $50 billion worth of real estate will have to be sold in the next three to five years as loans backed by those properties come due, according to Mr Pulley the Managing Director of Fortress. Some Japanese banks may have to sell properties that were used as collateral as real estate values in Japan fall about 30 percent to 40 percent.

Total commercial mortgage debt in Japan this year will reach a record high 1.12 trillion yen ($14 billion), a 59 percent increase from last year, according to an estimate by Moody’s Investors Service.

Source: Bloomberg (edited by Bear Logi)

Mitsui Fudosan Residential acquired a former food warehouse in Toyosu, Koto-ku, Tokyo. The seller was Simplex Investment Advisors, a Goldman Sachs and Aetos Capital affiliate. Mitsui has not revealed its plans for the property. The property has six stories above ground and 10,347 m2 of total floor space.

Source: Nikkei

On 21 Oct., Yamato Holdings decided the beginning of package delivery and fare collection business in Hong Kong.

Starting 31 Oct., the airport will resume regular international flights for the first time in 32 years, and new international terminal building as well as Tokyo International Air Cargo Terminal (TIACT) opened on 21 Oct. Haneda will be handling the second largest volume of air cargo as a Japanese airport.

Full view of TICAT opened on 21 Oct. 2010

This cargo terminal is large as it has site area of about 170,000m2 and about 80,000m2 of total floor area.

Ihe terminal comprises two international cargo buildings, fresh food building and two office buildings. The 1st international cargo building is a shed managed by TIACT and the second building is leased by carrier and air freight forwarders such as ANA, Nippon Express, Kintetsu World Express and Yusen Logistics.

Source: Japan Logistics Field Institute

On 15 October 2010, a Kintetsu Express (KWE)’s warehouse was delivered to its new subsidiary established at Shanghai Pudong total bonded area in May 2010. 

This newly established subsidiary has its own warehouse at Shanghai Pudong total bonded area adjacent to Shanghai Pudong airport, the largest hub for international air cargo in China. It handles export and import air freight, goods storage in bonded warehouse, added-value type logistics processing service and delivery. Aiming at opening in January 2011, it goes preparing for a new warehouse facility with the state of the art storage equipment in order to correspond to all kinds of customers’ needs for storage of goods from large cargos like production equipment and transportation machine to precise electric parts like semiconductor, chemical products requiring temperature control and medical products.

Source: KWE

In October 2006, Biccamera opened Higashi-Matsuyama Center in Higashi-Matsuyama City of Saitama Prefecture and operates logistics business for Kanto region. In February 2010 it acquired 100% ownership of Sofmap and that made more integrated operation possible. Therefore, Biccamera is going to fundamentally streamline logistics system of the entire group.

From November 2010, Higashi-Matsuyama Center (Saitama) which is Biccamera’s total logistics base  will become a base for merchandise delivery operation and temporary storage of large goods of Biccamera and Sofmap. Urayasu Center (Chiba) which is total logistics center for Sofmap and has a good access to each store will become a base for merchandise delivery operation to each store and provision of work and repair business. Makuhari Center, which now provides work and repairs for Biccamera and Sofmap, will be closed.

Currently, in Osaka Biccamera group has three logistics bases for Kansai region. However, these will be closed and Kobe Center will be newly established, which is a new total logistics hub for Kansai region and will cover not only Kansai region but also Aichi and Okayama prefectures.

Consolidation of logistics bases will make possible the followings: sharp reduction of distribution cost, shortening of merchandise delivery time to stores and customers, and reduction of stock by sharing stock between Biccamera and Sofmap.

Starting day of operation: 1 November 2010

Overview of new logistics center

Name: Kobe Center

Address: 2-1 Nadahama-cho, Nada-ku, Kobe-shi, Hyogo

Area to be used: 9,334m2

Source: Biccamera

Kuehne + Nagel Group a global logistics company expanded its business volumes, taking advantage of the favourable economic environment for the logistics industry.

The operational result (EBITDA) of CHF 271 million in the third quarter marked a record in the company’s history.

l Compared with the first nine months of last year turnover rose by 18.6 per cent 

l EBITDA increased by 7.5 per cent (adjusted by 12.0 per cent) to CHF 746 million.

l Net earnings improved by 16.0 per cent (adjusted by 20.2 per cent) to CHF 449 million.

Seafreight
* During the first nine months of 2010　maintained high-level container volume with a 17 per cent increase.

* Growth in the global sea freight market, however, softened in the third quarter.

Airfreight
* Increased airfreight tonnage by 29 per cent in the first nine months.

* Growth in the international airfreight market had slowed in the middle of the year.

* Increase volumes and market share, especially in Asia.

Road & Rail Logistics
* First three quarters of the year, European overland activities registered a growth in net turnover of 9.5 per cent.

Contract Logistics
* Net turnover remained at the previous year’s level.

* EBITDA decreased in the first nine months by 13.2 per cent partly due to currency adjustments (6.6 per cent) and start-up costs for new businesses.

Source: Kuehne + Nagel

Daisyo a Japanese food conglomerate has recently purchased a piece of land in Adachi Tokyo for construction of a new food distribution center.

Land acquisition details

(1) Date of Contract:    March 31, 2010

(2) Date of delivery:     September 29, 2010

(3) Location:               6-2-5 Iriya, Adachi-ku, Tokyo

(4) Area:                     9,901.51 square meters (2,995.21 tsubo)

(5) Building Plan Outline

Building Use: Office and Warehouse

Building size: approximately 4,000 square meters (tentative)

Source: Daisyo

On 15 October 2010, Kawasaki City started to look for enterprises which would forge ahead to about 9.9 ha in Higashi-Ogijima Total Logistics Base Area.

The application period is from 15 October to 17 December 2010. The plat for application is Higashi-Ogijima 4A area (21,444.00m2 from 88, Higashi-Ogijima, Kawasaki-ward), 4B area (16,870.98m2 from 88, Higashi-Ogijima, Kawasaki-ward）, 4C area (16,871.05m2 from 88, Higashi-Ogijima, Kawasaki-ward）, 5A area （17,509.93m2 from 86, Higashi-Ogijima, Kawasaki-ward）, 5B area (17,509.94m2 from 86, Higashi-Ogijima, Kawasaki-ward）、6 area (9,093.53m2 from 90, Higashi-Ogijima, Kawasaki-ward）.

Leasing condition for these area is term leasehold interest for business and leasing period is 20 years.

For detailed information, please refer to http://www.city.kawasaki.jp/e-news/info3241/file2.pdf (in Japanese)

Point of Contact:
Kawasaki City
Management Planning Section, Port Management Department, Port Bureau
TEL：+81-(0)44-200-3047
58keiki@city.kawasaki.jp

J-REP Co., Ltd (“J-REP”) a Japanese industrial real estate group has announced that it intends to acquire all the common shares of the company in a move to delist from the Mothers section of the Tokyo Stock Exchange.

J-REP will become a wholly owned subsidiary of Macquarie Goodman Japan Pte. Ltd a joint venture between Macquarie and Goodman.

J-REP will participate as an investor in a new logistics real estate development fund to be established by Macquarie and Goodman known as ‘Japan Logistics Development Framekwork’ (JLDF)

On a successful delisting of the company, J-REP will be renamed ‘Goodman Japan’.

For more details refer to the company press release here

Source: J-REP (edited by Bear Logi)

Global Logistic Properties Ltd. is set to raise S$3.45 billion ($2.64 billion) in Singapore’s biggest initial public offering.

Shares in GLP, the overseas logistics unit of Government of Singapore Investment Corp., were priced at S$1.96 a share, the top end of a range marketed to investors.

Mapletree Industrial Trust, owned by a unit of Temasek Holdings Pte, plans to raise as much as S$940 million in an IPO next week.

Global Logistic, which said last month it would offer 1.76 billion shares, plans to use S$1.5 billion of the proceeds to expand in China and Japan, and about S$600 million to pay down existing shareholder loans. There is an over-allotment option to expand the sale by 234.7 million shares.

Source: Bloomberg (edited by Bear Logi)

Bear Logi is to exhibit at property forum MIPIM Asia in Hong Kong from November 10th to 12th. Bear Logi will hold seminars on how to invest in Japan Property as well as discuss why industrial real estate continues to attract investors in Japan and China.

MIPIM Asia focuses exclusively on facilitating real estate transactions and investment in the Asia Pacific markets. Join the key players for three days of networking, prospecting and promoting at the region’s top property event.

MIPIM Asia 2009 key figures

l 1,927 participants

l 1,021 companies

l 384 investors, end users, hotel groups and retailers

l 146 exhibiting companies

l 42 countries

Source: MIPIM

* BOJ move likely to accelerate property market recovery

* BOJ's asset-buying could fuel REIT sector M&A

* Tokyo Stock Exchange's REIT index jumps to 5-month high

Mitsubishi Estate and other Japanese property stocks jumped on Wednesday as investors bet the central bank's surprise plan to buy assets including real estate investment trusts would help spur on the industry's recovery.

Further consolidation in the country's 3 trillion yen ($36 billion) REIT market is also expected if the Bank of Japan pours money into selective REITs with financial stability.

REITs, corporations that pool investor funds to buy real estate, have lost about two-thirds of their value since peaking in May 2007 as the global credit crunch made it harder for them to raise funds to purchase properties for growth.

But the Bank of Japan's plan to set up a 5 trillion yen ($60 billion) fund to buy a wide range of assets including REITs, along with cutting benchmark interest rates to virtually zero, has brought "extremely positive" support to Japanese REITs, said Daisuke Seki, CEO of IB Research and Consulting, a REIT consultancy.

"REITs are seeing an increasingly positive business environment because fund-raising is becoming easier and now, investors are assured that the government will be pumping money into the (REIT) market," he said.

Seki said the BOJ's move could also accelerate mergers and acquisitions in the country's REIT market if the central bank is seen targeting mainly REITs with bigger assets or better financial health.

Shares of Mitsubishi Estate surged 4.2 percent, and the real estate sector's subindex also rose 4.2 percent.

Among REITs, Nippon Building Fund Inc gained 5.2 percent, Japan Real Estate Investment jumped 6.4 percent and Japan Prime Realty Investment Corp rose 1.2 percent.

That helped the Tokyo Stock Exchange's 36-member REIT index rise 1.2 percent to its highest close since May 6.

Through the Bank of Japan's 5 trillion yen fund announced on Tuesday, the central bank plans to allocate about 3.5 trillion yen to buy government debt and treasury bills, and the remainder to purchase other assets.

BROADER IMPACT

To counter a tighter lending environment and falling property prices, Japanese REITs last year began actively pursuing mergers and acquisitions as weaker players seek partners for survival.

The industry consolidation, along with greater willingness among banks to offer loans, has helped REITs improve their financial health and buy properties in the past year.

Japanese REITs had acquired properties worth a total 366 billion yen in the six months to June, more than double the figure a year ago, with more transactions expected towards the end of this year, according to a Barclays Capital report.

The BOJ's latest move is also likely to support Japan's property market as a whole, said SMBC Friend Securities Research Centre analyst Masao Bamba.

"It's not that the government will directly buy properties, but the fact that they will pump money into the REITs and help maintain their cash status means that property transactions in general will be activated. REITs are key vehicles in property transactions," said Bamba.

"The news came also when the (property) market was heading for a recovery with easier access to banks' lending. It's positive for the overall property market," he said.

Betting on a recovery in Japan's property market, investors from the United States to Singapore are already on the hunt for real estate in Japan with over $2 billion in deals cemented since late last year and more in the offering.

Source: Reuters

Agility has appointed Steve Whittingham as the new managing director for Korea and Japan.

This appointment comes as the global logistics provider looks to strengthen its management team in those growing markets.

He will be based in Agility's Seoul office.

Source: Agility

DHL has appointed Roger Crook to the role of CEO at DHL Express for the Asia Pacific, Eastern Europe and Middle East regions, which will take effect 1 January 2011.

In his new role, he will work on sharpening the company's focus on international cross border shipping business in the APEM region by targeting MNCs and SMEs.

Source: DHL

LaSalle Investment management Inc. announced that the fund it manages has decided to acquire an in-service logistics facility in Tokyo bay area.

LaSalle has made a decision to acquire this property following 3 of those in Tokyo bay are which had been acquired in June 2010. It will expand the investment in large high functional logistics facilities by managing of “LaSalle Japan Logistics Fund II” and have a plan to invest about 150 billion yen (US$ 1.8 billion) in a coming year and half.

Mr. Yosuke Yoshikawa, operating officer in charge of logistics department from LaSalle Investment Management Inc., says “this logistic facility we acquired has approximately 17,000m2 of total floor area and located close to central Tokyo, and we see this as a stable target of investment. By consolidating logistics hubs for the enterprises and anticipating brisk demand for large high functional logistics facilities corresponding to cost reduction, LaSalle will continue to acquire in a proactive manner logistics facility which has a good location and land for development in Tokyo metropolitan area and Kansai region and provide in a long term reasonable facilities.”

LaSalle Japan Logistics Fund I and II:

The fund specialized in logistics which invests in Japanese logistics properties with fund raised from institutional investors, major pension funds, university funds, investment governments in USA, Europe, Middle East, Asia region. The portfolio is about 200 billion yen (US$ 2.4 billion) and this fund is related to “Tokyo Bay Area Logistics Facilities Portfolio”(S&LB), “Nippon Express Ichikawa Shiohama Center” (BTS), “Logiport Kashiwa”(multi-tenant), “Logiport Osaka” (multi-tenant), “Hamura Logistics Center” (BTS), “Sumitomo Chemical Logistics Shiino-mori Logistics Center”(BTS), “Logiport Nagareyama”(multi-tenant).

Point of Contact:

Mr. Imaizumi, PR section, LaSalle Investment Management Inc.

Tel：+81-(0)3-5532-8921

Source: LaSalle Investment Management Inc.

China's gross domestic product is forecast to rise 9.5 per cent in 2010, accelerating from 9.1 per cent in 2009.

The forecast represents the government's official view of the country's economic outlook.

China's economy rose 11.9 per cent in the first quarter and 10.3 per cent in the second quarter of this year.

China's purchasing manager index for September showed a strong revival in economic activities, soothing concerns about a double-dip in the Chinese economy.

Source: Reuters