As demand for logistics infrastructure rises in Japan, Mapletree is expanding its footprint with the Chitose Kami-Osatsu Logistics Centre in Hokkaido.
The Do-O Expressway is never quiet. An artery of traffic that runs between the north and south of Hokkaido, Japan, it is plied by trucks that carry everything from the region’s famed agricultural produce to critical medical supplies.
As truckers exit at Chitose Interchange on their way to the cargo terminal of New Chitose Airport, they may just get a glimpse of a new metal-and-chrome development sitting a short distance from the highway.
This is Chitose Kami-Osatsu Logistics Centre, one of the latest nodes in the area’s logistics network.
The development is a joint venture between Mapletree and a Japanese partner, which holds a minority equity share of 30% in the property. It is strategically located close to New Chitose Airport, the largest airport in Hokkaido. The airport is a key logistics gateway that handles a wide range of commodities, from sea urchins to racehorses.
The logistics centre benefits from its proximity to a number of semiconductor manufacturing facilities, including a state-of-the-art fabrication plant operated by a Japanese semiconductor
manufacturer, approximately a 15-minute drive away.
The plant is targeted to be fully operational by April 2027, which sets Chitose Kami-Osatsu in good stead to meet the rising demand for logistics facilities in the vicinity.
Making MAJIC
Logistics continues to account for the lion’s share of Mapletree’s development pipeline. The asset class is Mapletree’s largest, comprising 42.5% (S$32.4 billion) of total assets under management (AUM), and is a key growth driver for the Group.
In 2014, Mapletree launched its first logistics-focused fund in Japan, the Mapletree Japan Logistics Development Fund, which invested in 12 Grade A logistics development assets. Chitose Kami-Osatsu Logistics Centre comes under the Mapletree Japan Investment Country Private Trust (MAJIC), which closed in 2024.
MAJIC is the property giant’s second logistics-focused fund in Japan, and its third overall in the country. The two earlier vintage funds delivered strong performances with internal rates of return above 20%.
MAJIC was initially seeded with three logistics developments in Central Tokyo, Central Kyoto and Miyagi Prefecture, all strategically located near major logistics nodes. They are Keihin-jima Logistics Facility, Mapletree Kyoto Logistics Centre and Sanbongi Logistics Facility. Chitose Kami-Osatsu Logistics Centre and Kitakami Kanegasaki Logistics Centre were subsequently added.
Mapletree Kyoto Logistics Centre in Kyoto, Kansai and Kitakami Kanegasaki Logistics Centre in Iwate Prefecture are slated for completion in the second half of 2027. Kitakami Kanegasaki will be Mapletree’s first large-scale logistics facility development in Japan’s Tohoku region, spanning approximately 64,000 square metres in gross floor area.
MAJIC will continue to source for quality logistics development projects to fully deploy capital raised and seal Mapletree’s foothold in Japan’s growing logistics sector. The fund is expected to
achieve a target AUM of 110 billion yen upon full deployment of committed capital.
