Ares Management has secured JPY612bn ($3.8bn) for its latest Japan-focused logistics development strategy, marking the largest closed-end institutional real estate fundraise in the alternative asset manager’s history, according to a report by Bloomberg.
The Japan Logistics Development Partners V LP fund closed at almost 50% above the size of its predecessor, which was raised in 2021, highlighting continued institutional appetite for Japanese real estate and logistics infrastructure.
Canada Pension Plan Investment Board is a cornerstone investor, committing JPY150bn to the new vehicle. Other backers include sovereign wealth funds, insurers, financial institutions and institutional investors across North America, Asia-Pacific, Europe and the Middle East.
The fundraising comes as Ares continues to expand its global real estate platform. Ares Real Estate had approximately $121bn in assets under management at the end of June.
The new fund will follow the strategy employed by its predecessors, targeting the development of modern, institutional-quality logistics facilities in Japan’s major metropolitan areas.
Investment activity will be concentrated around Tokyo, Osaka and Nagoya, where demand for strategically located logistics capacity is being supported by structural changes in distribution and supply chains.
