Hines, Mitsubishi Estate, and MBK Real Estate Asia Acquire Prime Logistics Asset in Singapore

Hines, Mitsubishi Estate Co., Ltd., and MBK Real Estate Asia have joined forces to acquire a prime logistics asset in Singapore, located at 15 Senoko Loop. This completed sale and leaseback transaction marks Hines’ second industrial deal in the country, showcasing their commitment to growth in the region.

The property, situated on a 24,464-square-meter site with a four-story facility, offers around 41,482 square meters of total gross floor area. It includes climate-controlled warehouse space and an administration area, currently leased back to British American Tobacco as the anchor tenant.

With Singapore’s industrial and logistics sector remaining popular among Asia Pacific investors, the acquisition comes at a strategic time. Limited quality spaces and a supply crunch have driven up rent prices and capital value growth in the first quarter of 2024, making this investment opportunity even more attractive.

Kian Fong Lim, Country Head for Singapore at Hines, expressed excitement about the partnership with Mitsubishi Estate and MREA, highlighting the potential for capturing more opportunities in the market. The collaboration with Japanese institutional partners signifies a significant milestone for Hines in Singapore.

The deal also reflects the confidence of Mitsubishi Estate Asia and MREA in the robustness of Singapore’s logistics and industrial sector. Koji Segawa, Managing Director of Mitsubishi Estate Asia, and Koji Nishikiori, Director & CEO at MREA, both emphasized the prime location of the property and the strong performance of the market as key factors driving their investment decision.

Since 2020, Hines has been actively expanding its industrial portfolio in Asia Pacific, with a total of 16 assets secured across five markets. This latest acquisition in Singapore underscores Hines’ dedication to growing its presence in the country and capitalizing on the region’s potential.

Overall, the collaboration between Hines, Mitsubishi Estate Co., Ltd., and MBK Real Estate Asia represents a strategic move to leverage the strength of each partner and create value in Singapore’s thriving industrial and logistics market. With a focus on sustainable growth and value creation, the joint venture aims to deliver positive outcomes for tenants and the community.