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Mar. 01, 2019
Sumitomo Corporation
Sumisho Realty Management Co., Ltd.

Consideration Being Given to Creating REIT Focused Primarily on Logistics Facility Investment

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo) has begun considering setting up a real estate investment trust (REIT) focused primarily on investment in logistics facilities (hereinafter, “the Listed REIT”) through its wholly-owned subsidiary Sumisho Realty Management Co., Ltd. (Head Office: Chuo-ku, Tokyo; President and CEO: Hideki Yano; hereinafter, “SRM”) (both companies are hereinafter collectively referred to as “the Sumitomo Corporation Group”),

In view of rising demand for cutting-edge logistics facilities to serve as platforms supporting the expansion of online sales in recent years, Sumitomo Corporation has developed the SOSiLA series of innovative logistics facilities capable of meeting a variety of logistics needs and designed to make distribution very convenient. In realizing SOSiLA’s brand concept of “Logistics Facilities Connecting People and Society” through the three keywords of Sociability (ties to society), Sustainability (eco-friendliness and sustained growth), and Individuality (consideration for people and working environments), Sumitomo Corporation is creating facilities that provide new value by addressing the need for more efficient logistics and distribution processing, ensuring that facilities are sustainable and versatile, and improving working environments. It has already committed more than 150 billion yen (Note 1) to developing facilities in the Tokyo metropolitan area and the Kansai region, including SOSiLA Yokohama Kohoku, SOSiLA Sagamihara, SOSiLA Ebina, SOSiLA Kasukabe, and SOSiLA Kawagoe.

SRM was established in September 2007 to take over asset management of Sumitomo Corporation’s private-placement real estate funds for domestic and foreign institutional investors. It has since been involved in running private-placement funds and private-placement REITs targeting office buildings, commercial facilities, housing, logistics facilities, and hotels, and it currently has more than 420 billion yen in assets under management (Note 2).

By setting up and running the Listed REIT, the Sumitomo Corporation Group would be seeking to help people enjoy more comfortable living and contribute to community and industry development. The Group is hoping to further expand its real estate business by taking a two-pronged approach of pursuing non-asset businesses such as the Listed REIT (Note 3) as well as conventional on-book businesses (Note 4).
 

 
(Note 1)
This figure includes not only in-house assets but also assets owned by funds in which Sumitomo Corporation has investments, and reflects the asset scale of developed properties upon completion.
(Note 2)
This figure represents the total acquisition price for assets owned by customers who have outsourced asset management to SRM; acquisition prices for overseas assets have been converted into Japanese yen using the average exchange rates for the months in which they were acquired.
(Note 3)
Businesses that do not hold assets themselves but instead invest in real estate development using funds collected from outside parties in order to earn commission revenue.
(Note 4)
Businesses that generate rental revenue and capital gains by owning capital and voluntarily assuming investment risk.

 

 

<Reference>
■Sample properties in the SOSiLA series

SOSiLA Yokohama Kohoku

Location : Yokohama, Kanagawa Prefecture
Completed : September 2017
Total floor area : 87,444㎡

 

SOSiLA Sagamihara

Location : Sagamihara, Kanagawa Prefecture
Completed : May 2018
Total floor area : 55,121 ㎡

 

SOSiLA Ebina

Location : Ebina, Kanagawa Prefecture
To be completed : February 2020(tentative)
Total floor area : 76,892㎡

 

SOSiLA Kasukabe

Location : Kasukabe, Saitama Prefecture
Completed : March 2019
Total floor area : 52,947㎡

 

SOSiLA Kawagoe

Location : Kawagoe, Saitama Prefecture
Completed : January 2019
Total floor area : 21,642㎡

 

 

■ SOSiLA website: http://sosila.com/

 

 

■Sumitomo Corporation’s Material Issues

Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This Project especially contributes to “Contributing to the Development of Local Communities and Industries”, “Establishing a Foundation for Comfortable and Enriching Lifestyles” and “Providing Diverse “Accessibility” ”.

 


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