Industrial & Infrastructure Fund Investment (IIF) (TYO:3249) said will acquire two domestic real estate trust beneficiary rights for a combined 12.42 billion yen as part of a portfolio shift toward more inflation-resilient assets, according to a Thursday filing on the Tokyo Stock Exchange.
IIF will buy the IIF Funabashi Logistics Center II in Chiba from SMFL MIRAI Partners for 9.12 billion yen and the IIF Higashihiroshima Manufacturing Center in Hiroshima from a domestic operating company for 3.30 billion yen. The properties have appraisal values of 10.20 billion yen and 4.45 billion yen respectively, implying unrealized gains of more than 10% on each.
The Funabashi logistics facility, fully leased to a major third-party logistics operator, carries an NOI yield of 4.3% (3.9% after depreciation. The Higashihiroshima plant, Webasto Japan's only domestic manufacturing base for automotive roof systems, offers an NOI yield of 6.0% (5.1% after depreciation) under a 20-year fixed-term lease with CPI-linked rent and a floor that prevents cuts if inflation slows.
IIF said the deals, funded with new borrowings to be partly repaid from planned land-lease asset sales, are expected to support growth in distributions per unit and net asset value