Ares raises $4 billion for Japan logistics fund in unit's largest fundraise

• Canada Pension Plan Investment Board committed 150 billion yen as a cornerstone investor, continuing its backing of Ares Japan logistics funds since 2011
• The fund has 1.7 trillion yen in total investment capacity and has already committed to projects worth approximately 450 billion yen
• Investments will target modern logistics facilities in key Japanese markets (Greater Tokyo, Greater Osaka, Nagoya), with CBRE forecasting rent increases by late 2027 driven by growing demand for modern logistics space

Summary

Ares Management's real estate division has successfully raised 612 billion yen ($4 billion) for its fifth Japan logistics development fund, Japan Logistics Development Partners V LP, marking the unit's largest closed-end institutional fundraise. The fund closed at its hard cap and is approximately 50% larger than its 2021 predecessor.

Investment Focus:

The fund will primarily develop modern logistics facilities in Japan's key metropolitan markets, including Greater Tokyo, Greater Osaka, and Nagoya. CBRE projects rental increases for large multi-tenant logistics facilities in Japan's four major metropolitan areas by late 2027, driven by growing demand for modern logistics space.

Key Investors:

The fund attracted capital from global pension funds, sovereign wealth funds, insurers, and financial institutions across North America, Asia-Pacific, Europe, and the Middle East. Canada Pension Plan Investment Board (CPP Investments) serves as a cornerstone investor with a 150 billion yen commitment, continuing its support since the fund series' 2011 launch.

Investment Capacity:

The fund has 1.7 trillion yen in total investment capacity and has already committed approximately 450 billion yen to projects. Marq Logistics, Ares' global logistics real estate platform, will develop and operate the assets. Marq manages about 120 million square feet in Japan and over 655 million square feet globally as of June 30.

Company Scale:

As of June 30, Ares Management oversees more than $671 billion in total assets under management, with its real estate division managing approximately $121 billion.

Market Implications:

The successful fundraise signals strong institutional confidence in Japan's logistics sector, supported by resilient demand, evolving supply chains, and positive rental growth outlook.