Ares Raises $4 Billion for Japan Logistics Fund in Its Largest-Ever Unit Fundraise

Ares Management has raised $4 billion for a new Japan logistics development fund, its largest closed-end institutional fundraise to date for the real estate unit.

The Japan Logistics Development Partners V LP closed at its hard cap of 612 billion yen, making it nearly 50% larger than Ares’ previous fund, raised in 2021. The fund will focus mainly on modern logistics facilities in Greater Tokyo, Greater Osaka and Nagoya.

Investors include pension funds, sovereign wealth funds, insurers and other financial institutions from North America, Asia-Pacific, Europe and the Middle East. The Canada Pension Plan Investment Board, which has backed every Japan logistics fund since the strategy began in 2011, committed 150 billion yen as a cornerstone investor.

“We continue to see value in modern logistics infrastructure supported by resilient demand, evolving supply chains and a positive outlook for rental growth,” said Gilles Chow, CPP Investments’ managing director and head of real estate for Asia-Pacific.

Ares said the fund has total investment capacity of 1.7 trillion yen and has already committed to projects representing around 450 billion yen. Marq Logistics, the firm’s global logistics real estate platform, will develop and operate the assets. Ares said Marq manages about 120 million square feet in Japan and more than 655 million square feet worldwide.

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We continue to see value in modern logistics infrastructure supported by resilient demand, evolving supply chains and a positive outlook for rental growth