Ares Management Closes ¥612 Billion Japan Logistics Fund at Hard Cap With CPP Investments as Cornerstone Backer

NEW YORK & TOKYO — Ares Management has closed Japan Logistics Development Partners V LP (JDP V) at its hard cap of ¥612 billion, approximately US$4 billion, the firm announced Sept. 1, 2026. The vehicle is Ares Real Estate's largest closed-end institutional fundraise to date and is nearly 50% larger than its 2021-vintage predecessor, JDP IV, which raised ¥412 billion.

Canada Pension Plan Investment Board (CPP Investments) is a cornerstone investor in JDP V, committing ¥150 billion, approximately US$968 million. CPP Investments has participated in every vintage of the JDP fund series since its inception in 2011.

Fund Size, Structure and Deployment

JDP V's total investment capacity stands at ¥1.7 trillion, approximately US$11 billion, reflecting leverage and co-investment alongside the ¥612 billion in equity commitments. The fund has already committed to projects representing approximately ¥450 billion in total investment and maintains an additional proprietary pipeline of development opportunities.

The fundraise follows Ares' acquisition of GCP International in March 2025. Commitments came from a global investor base that includes pension funds, sovereign wealth funds, insurance companies and financial institutions across North America, Asia-Pacific, Europe and the Middle East.

The fund's assets will be developed and operated by Marq Logistics, Ares' vertically integrated logistics real estate platform. Marq manages approximately 120 million square feet in Japan and more than 655 million square feet globally as of June 30, 2026. Ares Real Estate manages approximately US$121 billion in assets overall, within a broader Ares platform of more than US$671 billion in assets under management as of the same date.

Target Markets: Tokyo, Osaka and Nagoya

Consistent with prior vintages, JDP V will focus on the development of institutional-quality modern logistics facilities across Greater Tokyo, Greater Osaka and Nagoya.

In Greater Tokyo, large multi-tenant logistics vacancy stood at 8.2% in the first quarter of 2026, down from 8.8% in the fourth quarter of 2025, as tenants absorbed recently delivered supply. Effective rents in the market reached ¥4,530 per tsubo in the first quarter of 2026, up 0.9% quarter-over-quarter, marking a turn from a prior period of broadly flat rental growth.

Greater Osaka presents a tighter supply picture. Vacancy for large multi-tenant logistics space was 2.2% in the first quarter of 2026, rising to approximately 2.4% by the second quarter — conditions that reflect sustained undersupply of institutional-grade product. Rents in Osaka were rising over the year through December 2024, contrasting with flatter trajectories in Tokyo and Nagoya during the same period.

Greater Nagoya carries a different profile. Vacancy for large multi-tenant logistics space reached 16.8% in the first quarter of 2026, up from 15.5% in the fourth quarter of 2025, reflecting a persistent supply overhang. Rents in the market were broadly flat over the year through December 2024, limiting landlord pricing power in the near term.

Executives Comment on the Close

"We are grateful for the strong support from both longstanding and new investors in JDP V," said Julie Solomon, Partner and Head of Ares Real Estate. "The successful close of our largest closed-end real estate fund to date reflects the strength of the team's track record, the compelling opportunity set in Japan and the benefits of Ares' scaled real estate platform. We look forward to continuing to create value for our investors through disciplined execution, local market expertise and global data and insights."

Yoshiyuki Chosa, Partner and Head of Japan Real Estate at Ares, said Japan remains one of the most attractive logistics markets globally, supported by long-term structural demand for modern supply-chain infrastructure. "JDP V's successful close reflects the confidence investors have placed in our platform and the enduring relationships we have built with customers and local stakeholders over many years," Chosa said. "We believe the Fund is well positioned to capitalize on the next phase of logistics development opportunities across Japan."

Gilles Chow, Managing Director and Head of Real Estate Asia Pacific at CPP Investments, said the organization has invested in Japan's logistics sector for more than a decade as part of a broader strategy to deploy long-term capital in high-conviction markets. "We continue to see value in modern logistics infrastructure supported by resilient demand, evolving supply chains and a positive outlook for rental growth," Chow said. "JDP V provides compelling exposure to these themes and aligns with our disciplined approach to building a diversified portfolio that can deliver sustainable, attractive risk-adjusted returns for CPP contributors and beneficiaries."

About the Firms

Ares Management Corporation (NYSE: ARES) is a global alternative investment manager with operations across North America, South America, Europe, Asia Pacific and the Middle East. Ares Real Estate operates with more than 700 professionals across 38 offices.

CPP Investments manages the Canada Pension Plan Fund on behalf of more than 22 million contributors and beneficiaries. Headquartered in Toronto, the organization maintains offices in Hong Kong, London, Mumbai, New York City, São Paulo and Sydney. As of June 30, 2026, the fund totaled C$863.6 billion.