Heitman, a Chicago-based real estate investment manager, has completed two acquisitions in Japan’s fast-growing Fukuoka market, including the Tosu Central Distribution Centre and a nine-asset residential portfolio. Financial terms of the deals were not disclosed.

The transactions represent the largest single-asset logistics acquisition in Greater Fukuoka, and the largest multi-asset residential portfolio acquisition in the city’s history. Together, they underscore Heitman’s conviction in Fukuoka as a major regional growth market, driven by population inflows, advanced manufacturing investment, and infrastructure development, the company says.

Heitman executed the deals on behalf of its funds under management and strategic capital partners, Mitsubishi HC Capital Realty and SMFL Mirai Partners, a subsidiary of Sumitomo Mitsui Finance and Leasing.   

Comprising 17,676 tsubo ( 628,968 square feet ) of leasable space, Tosu Central DC features pillarless truck berths for side-by-side loading, reducing waiting times. It is Casbee A-certified, with sustainability features, including more than 6,200 solar panels expected to generate more than 4,400,000 kilowatt-hours of renewable electricity each year.

“Tosu is centred around a high level of advanced manufacturing industry growth and distribution activity, extending from Fukuoka across Kyushu,” says Brad Fu, managing director and head of Asia-Pacific acquisitions at Heitman. “We believe that the Tosu Central Distribution Centre will serve the needs of a wide base of users that have continued to expand their operations in this area.”

Strategically located 2.3 kilometres from the Tosu Interchange, the intersection of the Kyushu, Nagasaki, and Oita expressways, Tosu Central DC offers direct connectivity to the entire Kyushu region. It also benefits from its proximity to the Amagi Railway, enabling significant workforce accessibility and supporting tenant operations.

The Tosu market has rapidly evolved into a core logistics hub in the Kyushu region, driven by growth in semiconductor manufacturing exceeding 6 trillion yen ( US$40 billion ) of capital expenditure in the past four years. Fukuoka ranks among Japan’s fastest-growing cities, supported by robust infrastructure and population inflows.

Residential portfolio

Heitman also acquired a nine-asset residential portfolio in Fukuoka. It comprises 316 units across key submarkets in the city, including Hakata and Hirao.

All properties offer residents access to Fukuoka’s Tenjin and Hakata business districts, both reachable within 15 minutes via direct subway and bus services. The properties feature a mix of studio, one/two, and three-bedroom units that cater to a wide range of tenants, including the city’s dynamic young professional workforce and growing families.

The company acquired the portfolio through an off-market transaction, providing an attractive entry point with both reversionary and longer-term market rental growth potential. Fukuoka’s proximity to major Asian hubs, including Busan and Shanghai, further supports its growing international appeal for new residents to Japan.

“We have strategically focused on building our investments in scale across the Fukuoka market,” says Fu. “In addition to Heitman’s acquisitions in other sectors within Greater Fukuoka, this portfolio contributes to our long-term positioning in this pivotal market, which is underpinned by favourable demographics, affordability, and sizeable inbound industry investment.”