In their first investment in Japan, Malaysia’s Employees Provident Fund (EPF) has acquired several logistics facilities in the greater Tokyo area. This is the first case of an Asian public pension fund investing in Japanese real estate.
EPF acquired five distribution centers in Saitama and Chiba from Mitsubishi Corporation for 14 billion Yen (117 million USD). Management has been entrusted to Diamond Realty Management, a subsidiary of Mitsubishi. The buildings are around 20 years old and attract lower rent than newer facilities, but are located in prime positions with strong tenant demand. Yields are expected to be around 10%, which is higher than the 4 ~ 5% offered by private REITS.
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