Location Funabashi, Chiba – Tokyo waterfront
Type Investment – Value Add
Asset Type Warehouse & Distribution Facility (x2)
Land Area 19,895m²
Gross Floor Area 38,630m²
Completion September 1992, August 1997
Structure SRC
Exit June, 2015

 

Investment Rationale:
UI identified these functional and well located warehouse and distribution assets located in a prime Tokyo waterfront logistics submarkets. UI sourced these assets in a non-bid exclusive basis due to its long standing relationship with the seller given UI’s leasing capabilities and co-invested in this transaction with its capital partners. The investment strategy involved leasing the vacant space and undertaking capex including painting and sealing of the facilities. UI also undertook the disposition strategy and achieved a better than targeted exit price.

Investment highlights:

  • Achieved 100% warehouse occupancy prior to closing
  • Passing rents better than underwritten rents
  • Managed capex; including the sealing and painting of the facilities
  • Re-positioned the asset by refreshing the appearance the assets
  • Assets exited ahead of targeted disposal date

The asset comprises two warehouse and distribution facilities with both buildings have a portion of warehouse space that is temperature and humidity controlled. Both facilities are fully occupied. The space is functional and can be efficiently demised given sufficient cargo elevators.

The Funabashi DC is located in the Wangan submarket of Chiba Prefecture, an established waterfront logistics location within the Tokyo Metropolitan Area. It is situated approximately 15 kilometers from the Tokyo CBD, 1.8 kilometers from the Hanwa IC on the Keiyo Road and 5.6 kilometers from the Chidori Interchange on the Higashi Kanto Expressway and National Highway 357 which runs parallel to the Expressway and Keiyo Road, and functions as a major base which covers central Tokyo and the greater metropolitan area.

The property is also located close to Funabashi City and provides convenient access to several railways stations on the JR and Keisei Railway Lines. The site is located along the route between Narita International Airport and central Tokyo, and thus is well-suited for handling not only marine cargo routed through Tokyo and Yokohama Ports, but also air cargo passing through the airport.