GIC Acquires Daiwa House-Developed Logistics Facility in Japan

By Kimberley Kao

Singapore state investment firm GIC has acquired a logistics facility in Tokyo as it continues to expand in Japan's real-estate sector to tap demand for logistics spaces being fueled e-commerce and supply-chain trends.

The four-floor property, developed by Japanese real-estate group Daiwa House Industry, spans more than 126,000 square meters, GIC said Friday.

According to a Nikkei report, the acquisition was valued at $400.0 million.

The deal comes after GIC said last year that it planned to acquire a portfolio of six logistics facilities in Japan for $800 million from alternative asset manager Blackstone Inc.

GIC, one of the world's biggest institutional investors which manages Singapore's foreign-exchange reserves, has been diversifying its portfolio to make it more resilient, stepping up investment in infrastructure and real estate, which made up 13% of its portfolio as of March 31.

GIC said its portfolio achieved an annualized nominal rate of return of 5.8% in U.S. dollar terms over a 20-year period through the end of March 2024.

Geographically, GIC's portfolio exposure to Japan sits at just 4%, compared to the U.S. at 39% and Asia ex-Japan at 22%, according to its latest investment report.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

August 30, 2024 01:27 ET (05:27 GMT)

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