Leading international firm Clifford Chance has advised AXA Investment Managers on the acquisition of the ESR Kuki Distribution Centre in Japan for approximately US$368 million. AXA, through a joint venture with fund manager ESR, acquired the distribution centre from ESR-managed vehicle Redwood Japan Logistics Fund II (RJLF II) and co-investors. It is the largest single asset acquisition by the joint venture to date.

Completed in September 2018, the 151,501 square metres Kuki Distribution Centre is in Saitama prefecture which is 50 kilometres north of central Tokyo.

Partner Satbir Walia who led on the deal said, “This acquisition is a significant addition to AXA Investment Managers logistics assets and we are thrilled to work alongside the AXA team to complete this complex acquisition. Our cross-jurisdictional team advised on the corporate and M&A elements of the transaction, as well as the funding structure and property compliance.”

“The acquisition reflects investors’ increasing demand for premium logistics assets, and the broader shift in consumer behaviour towards online shopping.”

Satbir and a team in Singapore and Tokyo, led by senior associate Tim Merchant, advised on the corporate aspects of the deal. They were assisted by Vipavee Kaosala, Ivan Chan and trainee Stephanie Ohira.

A team in Frankfurt and Singapore, comprising partner Marco Simonis, counsel Svenja Olgemöller, senior associate Jessica Fitch and trainee Christopher Mathias advised on the funds aspects of the deal.

Partner Eiichi Kanda and counsel Satoshi Nomura in Tokyo led the Japan investigations on the property portfolio and the property holding structure.