Property giant Mitsui Fudosan, GLP Japan to invest $3.5 bln in cold storage, Nikkei reports

Mitsui Fudosan Co

17/09/2024 18:20

Sept 17 (Reuters) - Japan's biggest property group
Mitsui Fudosan  8801.T , logistics firm GLP Japan along with
other local companies are planning to invest over 500 billion
yen ($3.53 billion) in cold storage facilities by 2030, the
Nikkei reported on Tuesday. 
    Mitsui Fudosan is looking to invest around 100 billion yen
primarily in the greater Tokyo area, whereas developer peers
like Tokyo Fudosan and Mitsubishi Estate  8802.T  will also be
penetrating the market, the report said.
    The move comes at a time when there is an increase in demand
for additional warehouses amid tight cold storage supply and
rising market demand for frozen foods, while the country's
restaurant industry suffers from a labour crunch. 
    "Cold storage supply is tight, with the utilization rate of
frozen or refrigerated warehouses over 90% in 12 major cities,
according to the Japan Association of Refrigerated Warehouses,"
the report said.
    GLP Japan will expand its cold warehouses by 1.9 times the
current total floor area to about 430,000 square meters by 2028,
Nikkei added in the report.
    Mitsui Fudosan could not be immediately reached for a
comment by Reuters, while GLP Japan did not immediately respond.
    

($1 = 141.7800 yen)

 (Reporting by Rishav Chatterjee in Bengaluru; Editing by
Shailesh Kuber)
 ((Rishav.Chatterjee@thomsonreuters.com;))