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

Ares Management's real estate division raised $4 billion for its largest Japan logistics development fund, Japan Logistics Development Partners V LP, on September 1. The fund, which reached its maximum target or "hard cap," is nearly 50% larger than its 2021 predecessor. It will primarily invest in developing modern logistics facilities in key Japanese metropolitan areas such as Greater Tokyo, Greater Osaka, and Nagoya.

CBRE predicts that rents for large multi-tenant logistics spaces in these regions will increase by late 2027 due to rising demand. The fund attracted investments from a diverse range of large investors, including pension funds, sovereign wealth funds, insurers, and financial institutions, across North America, Asia-Pacific, Europe, and the Middle East.

Canada Pension Plan Investment Board, which has backed every Japan logistics fund since their inception in 2011, committed $150 billion to the fund. Ares Management, with $671 billion in assets under management and Ares Real Estate with $121 billion in assets, will oversee the fund's development and operation through its global logistics real estate platform, Marq Logistics.

Marq manages over 120 million square feet of real estate in Japan and more than 655 million square feet globally as of June 30.