U.S. investment fund Blackstone is set to acquire a flagship logistics facility in central Tokyo from Nippon Express for more than ¥100 billion ($636 million), marking Japan’s largest logistics property transaction this year.
The asset, known as Tokyo C-NX, was completed in 2017 and has a total floor area of around 150,000 square metres. One of Nippon Express’ largest logistics hubs, the facility supports comprehensive third-party logistics (3PL) services and is also used by multiple external tenants.
Located about a 15-minute drive from central Tokyo, the site offers strong multimodal connectivity, with ports, freight stations and airports reachable within 30 minutes. Its proximity to commuter rail lines is seen as a key advantage in attracting labour amid an industry-wide driver and workforce shortage.
As part of the transaction structure, a real estate company affiliated with Mizuho Leasing will temporarily acquire the property before selling it on to Blackstone. Existing tenants, including Nippon Express, will continue operations at the facility, while additional leasing opportunities may open to other companies over time.
The sale forms part of Nippon Express Holdings’ broader effort to improve capital efficiency and offset losses from overseas operations. In November, the group reported an impairment loss of about ¥50 billion on its European business, citing economic weakness in Germany and other markets that led to goodwill write-downs. Underperforming operations included its Italian luxury apparel logistics business and an Austrian subsidiary.
To avoid slipping into the red, Nippon Express Holdings plans to sell roughly ¥100 billion worth of real estate assets by the fiscal year ending December 2025, significantly raising its initial target of ¥9 billion. The company estimates operating profit gains of around ¥72 billion from these asset sales and has not revised its current earnings forecast.
For Blackstone, the acquisition represents a renewed push into Japanese logistics real estate after a hiatus of nearly five years. The firm is betting on tighter market conditions as new supply slows and demand for urban-proximate logistics facilities rises, particularly in response to policy measures aimed at reducing long working hours for truck drivers.
Investment momentum in the sector remains strong. According to CBRE, total investment in Japanese logistics facilities reached ¥941.7 billion in 2024, the second-highest level since 2005, with activity in 2025 expected to remain at a similar pace.
Blackstone has been steadily expanding its footprint in Japan. In 2025, it acquired the Tokyo Garden Terrace Kioicho mixed-use complex from Seibu Holdings for about ¥400 billion, and in the corporate space, it bought TechnoPro Holdings for roughly ¥500 billion, taking the engineering staffing firm private.
The transaction underscores a broader trend in Japan’s logistics industry, where companies are increasingly monetising warehouse assets while continuing to use them, driven by rising demand for storage and distribution capacity fueled by the growth of e-commerce.
