Already one of Japan’s biggest distribution site owners and providers, Prologis is developing a new 440,000sq ft complex for retailer Töhoku CO-OP.
To be constructed on a build-to-suit basis, the new facility will be located at Prologis Park Tomiya 3 with direct access to Sendai’s central business district. No financial details of the deal have been released, but the three-story building will be equipped with vertical conveyance machines and rooftop solar panels.
“The lack of available supply in the region will lead to continued, strong demand for Class A logistics developments,” said Mike Yamada, president of Prologis Japan. “This project fills an important need for our customer.”
The Töhoku district of north-eastern Japan was devastated in the 2011 earthquake and tsunami and the new distribution hub is seen as a major step in rebuilding its commerce and infrastructure.
Prologis is already one of Asia’s biggest owners, operators and developers of industrial real estate, with approximately 23m sq ft of logistics and delivery space in Japan alone.
Specialising in multi-story developments suited for land-constrained locations, Prologis Japan manages 42 sites and 83 acres for further development.
The Töhoku CO-OP deal comes just weeks before another of the company’s Japanese distribution centres is due for completion. The year-long Prologis Park Kawajima 2 project is situated northwest of Tokyo’s central business district on the Kawajima Interchange Industrial Park.
“We expect strong growth in demand for high-quality Class A logistics facilities in the Tokyo area due to the ongoing reconfiguration of the supply chain in Japan and the lack of supply,” added Mike Yamada. “And we look forward to opening a building that can serve this demand effectively and enhance our customers’ distribution efficiency in the region.”
Last year Prologis also established Nippon Prologis REIT, a Japanese real estate investment trust, by contributing a portfolio of 9.6m sq ft of Class A properties. The 12 sites are situated in Tokyo and Osaka. The REIT is listed on the Tokyo Stock Exchange and serves as a long-term investment vehicle for modern logistics facilities. Prologis will retain at least a 15 per cent ownership interest in NPR.
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