Tishman Speyer, Mitsui Fudosan America Form Industrial JV

17 William Drive, a distribution and sorting center near Pittsburgh International Airport that Tishman Speyer acquired in December 2021. Image courtesy of Tishman Speyer

Tishman Speyer and Mitsui Fudosan America have formed a joint venture to acquire, develop, redevelop and operate industrial properties in major markets across the U.S. that will be seeded with an initial $500 million commitment from an MFA affiliate and co-investment capital from Tishman Speyer.

The newly created Tishman Speyer-Mitsui Fudosan America Logistics Venture will prioritize ESG investments that follow standards and specifications set by environmental certifications such as LEED and GRESB.

Tishman Speyer CEO Rob Speyer said in a prepared statement the evolving needs of today’s consumer have generated strong demand for well-located, functional industrial properties, particularly in the most supply-constrained urban centers. He said the new joint venture will enable them to create and operate facilities that bring companies closer to their customers.

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The funds will be used to pursue ground-up developments and major repositioning or redevelopment of existing value-add industrial acquisitions. The partners will be focusing primarily on major urban centers with dynamic workforces, growing populations and higher barriers to entry including Los Angeles; the New York Metro region; the Puget Sound region, the San Francisco Bay Area; Boston; Chicago; Washington, D.C.; and Austin, Texas.

The investments will be made in a wide range of assets that facilitate the movement and delivery of goods and services in those high-barrier locations, including distribution, warehousing, research and development, small bay, transload and outdoor storage.

Managing Director Paul Galiano, who serves as co-head of U.S. acquisitions and global capital markets at Tishman Speyer, said in prepared remarks Mitsui Fudosan America’s commitment to the new joint venture will accelerate Tishman’s industrial expansion from core and core-plus assets to include value-add, development and redevelopment opportunities.

The joint venture will also allow MFA, which has been investing in industrial properties for more than a decade, to grow and expand its portfolio, according to Sean McSweeney, senior vice president, acquisitions, Mitsui Fudosan America. McSweeney stated there are 53 projects being developed and managed in Asia under the Mitsui Fudosan Logistics Park flagship brand.

Growing platforms

The partnership will support the continued growth and diversification of Tishman Speyer’s industrial platform, which was launched in December 2021 with the acquisition of two distribution centers in Pittsburgh and Colorado Springs, Colo.

The New York-based firm will execute its industrial strategy through its in-house teams within its target markets. Earlier this year, Tishman Speyer hired industry veteran Andy Burke as managing director and head of industrial. Burke previously held leadership roles with AMB Property Corp., now Prologis, and Terreno Realty Corp., where he was part of the team that established its platform and took the company public in 2010.

Noting that the ever-expanding omnichannel experience constantly creates dynamic demands on the supply chain, Burke said in a prepared statement the joint venture will unlock significant value for their customers and investment partners by positioning investments in high-density locations.

Pere, which was the first publication to announce the joint venture, said prior to its formation Tishman Speyer had been investing in the industrial sector through diversified separately managed accounts and joint ventures. That included a partnership formed in late 2021 with Hana Financial Group that co-invests in a variety of asset types across the U.S., Europe and Asia. That strategic partnership also prioritizes asset classes and properties promoting ESG principles and innovation.

Speyer said the firm was excited to grow and diversify its strategic partnership with MFA, which is already a co-investor in a number of Tishman Speyer’s life science, residential and office developments.

MFA is a co-equity partner on Torrey View by Breakthrough, a 515,000-square-foot, 10-acre life science campus in San Diego being developed by Breakthrough Properties, which is a joint venture between Tishman Speyer and Bellco Capital. In May, Breakthrough secured $3 billion in funds for the financing, construction and development of a global life science portfolio.