Japan’s biggest property group Mitsui Fudosan, 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 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 comment by Reuters, while GLP Japan did not immediately respond.
Reuters
