CapitaLand exits Japan retail sector, invests in new logistics facility
The real estate firm will invest $90.8m in a new logistics facility in Osaka, Japan.
CapitaLand has divested its last remaining malls in Japan — Olinas Mall and Seiyu & Sundrug Higashimatsuyama — both located in Greater Tokyo, for a total of $520 million.
Having sold these to unrelated third parties, CapitaLand has divested all its five malls in Japan.
It will invest $90.8 million to fully acquire a freehold site to develop a four-storey logistics facility in Ibaraki, Osaka, its second logistics development in the country. It is slated for completion in the third quarter of 2023, with an estimated gross floor area of 27,000 square metres.
The site was purchased from Mitsui & Co. as part of its ongoing collaboration with the real estate firm to develop and operate logistics projects in Japan.
“CapitaLand has successfully exited from retail in Japan, which is non-core to the group, and will continue our strategic pivot by reinvesting the proceeds from the divestment of our mature malls into new economy assets like logistics that have significant growth opportunities," Jason Leow, president for Singapore and International, CapitaLand, said in a press statement.
"The group’s total logistics assets under management, including our two logistics assets in Japan, is about S$3.9 billion. Japan is a key market for CapitaLand to invest and expand our logistics portfolio to become a significant contributor to the Group’s total logistics AUM,”