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  3. Portfolio Composition and Investment Policies

Portfolio Composition and Investment Policies

Target Portfolio Area

The Tokyo and Osaka areas will be the prioritized focus of our target investments, while we will also selectively invest in attractive facilities in other areas.

Target portfolio area

Capture “Consumer Logistics” Demand

We believe that facilities in locations with the following characteristics will have a competitive advantage: access to areas of high consumption and transportation proximity, an important factor in capturing demand for “consumer logistics”, and convenient access to public transportation is important in attracting and retaining employees.

Examples of property selection

Access to areas of consumption Excellent access to high consumption areas (dense population areas) Zoning Industrial zoning allowing 24-hour operation
Transportation proximity Proximity to main roads, expressways and interchanges Employee retention Walking distance from public transportation

Our Strong Focus on Large Scale and High Functionality

We believe large-scale logistics facilities with high functionality are best able to meet tenants’ needs in terms of integrating, consolidating and increasing the efficiency of their logistics operations, making such facilities highly competitive.

■Competitiveness of large scale (gross floor area of approximately 16,500 ㎡ or more)

Integration and consolidation of logistics operations

We believe large-scale facilities allow tenants to realize greater efficiency in their businesses through integration and consolidation of their logistics operations in one location. With the shortening of product release cycles and increase in the number of different products offered, as well as the increase in demand for frequent delivery of small parcels, logistics operators and retailers have sought greater efficiency within their supply chain. Though many of them previously had their logistics operations scattered among multiple smaller facilities, we believe that they now increasingly seek consolidation in one large-scale area, allowing them to reduce total space leased, total inventory and freight costs, while increasing the overall efficiency of work conducted inside the facility.

Securing larger per-floor areas

Large-scale facilities with larger per-floor areas allow tenants to realize greater efficiency in their businesses through the following factors.

  • ● Enhancing efficiency of work inside the facility
  • ● Enhancing flexibility of its internal layout
  • ● Suppressing personnel requirements
  • ● Shortening vertical transport time, etc.

In addition, large-scale facilities with larger per-floor areas enable reducing wasted floor area in each tenant’s layout, maximizing the number of tenants that can effectively use a given area and allowing the owner to more easily address both demand by existing tenants to adjust their leased area, and to lease vacant space.

■Competitiveness of high functionality

In addition to the benefits afforded by large scale, prime logistics facilities, they also offer highly efficient storage and working areas, and safety features that allow tenants to operate with limited downtime during a business continuity compromising event. We believe these features offer prime logistics facilities distinct advantages in attracting tenants.

Functionality of prime logistics facilities

Functionality of prime logistics facilities

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