An Independent Growth Strategy
Independently creating property acquisition opportunities
JLF has built an abundant track record in sourcing and managing logistics properties. Along the way, it has developed a strong network with logistics real estate market players and the know-how to create flexibility in structuring transactions.
Property sourcing at JLF is not solely reliant on development properties from our sponsor or open auctions in the real estate acquisition market. Instead, JLF leverages its networks and know-how to independently generate acquisition opportunities.
Independent sourcing enables JLF to execute property acquisitions at relatively favorable terms and achieve greater profitability.
Ichikawa Logistics Center III
Acquired March 2019. Excellent access to central Tokyo. Off-market transaction enabled acquisition at high yield.
|Acquisition price||3,850 million yen|
|Expected NOI yield||6.6%|
Shiroi Logistics Center
Acquired July 2020. Building specifications make it a highly adaptable property. Leveraged JLF’s OBR know-how to pursue this collaborative development project with a partner.
|Acquisition price||3,875 million yen|
|Expected NOI yield||5.4%|
Maximizing asset value through OBR projects
OBR (Own Book Redevelopment) are redevelopment projects of assets owned by JLF.
For example, an OBR project may scrap an old, single-story warehouse and build a 4-story facility with modern specifications in its place. Doing so greatly enhances the property's earning potential and asset value.
This embodies one of JLF's strengths, as JLF is the only J-REIT to execute these redevelopment activities on an ongoing basis.
The benefits of OBR
Recognition unrealized gain through OBR
Daito Logistics Center
Yachiyo Logistics Center
Kiyosu Logistics Center
Kasugai Logistics Center
Strategic property dispositions
The condition of the property and market environment surrounding it change with the passage of time. JLF periodically validates the future cash flow projections of portfolio properties and strives to maintain and enhance portfolio quality through strategic property dispositions.
Because the JLF portfolio enjoys an abundant unrealized gain, property dispositions can lead to capital gains, which in turn can be returned to our unitholders through distributions.
Funabashi Logistics Center（Sold in October 2018）
|Sale price||7,900 million yen|
|Capital gain||926 million yen|
Tajimi Logistics Center（Sold in March 2020）
|Sale price||13,900 million yen|
|Capital gain||5,348 million yen|