Announcement of the Establishment of “Advance Private Investment Corporation”, a New Private REIT, and the Reorganization of the Real Estate Asset Management Companies

February 2, 2022

ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter "ITOCHU") has decided to establish “Advance Private Investment Corporation” (hereinafter the "Private REIT") to launch the investment business of an unlisted open-ended private real estate investment trust (hereinafter a "private REIT"), which will be operated by AD Investment Management Co., Ltd. (headquartered in Chiyoda-ku, Tokyo; Takeshi Takano, President & Chief Executive Officer; hereinafter "ADIM"), a wholly owned subsidiary of ITOCHU. The Private REIT, which is a comprehensive private REIT that does not limit its investment targets to properties for specific uses, is expected to commence operations around July 2022, targeting mainly multi-family residential properties, retail facilities, offices, logistics facilities, hotels and other properties for investment.

With a view toward responding to real estate demand and investor needs, ITOCHU has been engaging in the development and supply of good multi-family residential properties and logistics facilities for Advance Residence Investment Corporation (a J-REIT specializing in multi-family residential properties, hereinafter "ADR") and ITOCHU Advance Logistics Corporation (a J-REIT specializing in logistics facilities, hereinafter "IAL") while also providing a broad range of services including planning, development and asset management regarding commercial facilities, offices, hotels and other properties.

In the financial market where interest rates have stayed very low over the past number of years, there is strong demand mainly among institutional investors for investment opportunities that can be expected to provide a stable yield over the long term. Based on this market-oriented concept, ITOCHU will seek to provide an unlisted private REIT investment service to respond to demand while simultaneously leveraging ITOCHU's history and expertise in real estate development, thereby establishing a business benefiting each stake holder and society.

In addition, ITOCHU will reorganize the Group's real estate asset management companies. In doing so, it will merge ADIM*1 and ITOCHU REIT Management CO., Ltd. *2 (headquartered in Chiyoda-ku, Tokyo; Junichi Shoji, Representative Director, President & CEO; hereinafter “current IRM” on June 1, 2022 (hereinafter the "Merger"). Following the Merger, the assets managed by the new company are expected to increase to surpass 550 billion yen, and the company's name will be ITOCHU REIT Management Co., Ltd.

By sharing its investment expertise and strengthening its abilities to gather information about and acquire properties, the ITOCHU Group will work more closely with the three REITs (the two existing J-REITs, ADR and IAL, and the Private REIT, a comprehensive REIT that will be established as described above) as a sponsor to increase the assets they manage and to expand the foundations of their businesses.

  • *1 Entrusted with asset management services by ADR, a J-REIT specializing in multi-family residential properties
  • *2Entrusted with asset management services by IAL, a J-REIT specializing in logistics facilities

For more information, please refer to the press releases posted on the websites of ADR and IAL.

Advance Residence Investment Corporation (ADR) website
ITOCHU Advance Logistics Corporation (IAL) website