Industrial & Infrastructure Fund to Divest Four Land Leasehold Assets into Joint Ground Lease Fund with Jinushi Co.
Industrial & Infrastructure Fund Investment Corporation (IIF) announced on December 4, 2025, that it will divest four ground lease assets into a joint ground lease fund established with Jinushi Co., Ltd. The total expected disposition price is JPY 11.3 billion, generating an estimated JPY 1.7 billion in gains on sale. IIF will also commit a 7.0% anonymous partnership interest in the fund, securing medium-term distribution income and future preferential negotiation rights.
The assets to be transferred—including IIF Izumiotsu e-shop Logistics Center (land leasehold)—are all ground lease properties backed by long-term fixed-rent land lease contracts, with an average remaining lease term of 19.8 years. The buyer, Jinushi–KJRM GK, is also slated to acquire six tank terminal ground lease assets owned by IIF’s bridge fund, bringing the fund’s total underlying assets to 10 properties, with a combined acquisition price of approximately JPY 31.7 billion.
IIF is pursuing a strategy to strengthen inflation resilience through portfolio recycling, disposing of long-term fixed-rent land lease assets and reallocating capital to properties with greater upside potential. Jinushi Co., a TSE Prime–listed ground lease specialist, signed an agreement in November 2025 with Mitsubishi HC Capital Realty to form a JPY 100 billion “Jinushi Fund.” Alongside its private REIT dedicated to ground leases and bridge schemes with leasing companies, this new joint fund with a J-REIT further expands its multi-layered acquisition platform for ground lease assets.
The anticipated JPY 1.7 billion gain on sale will be fully distributed in the fiscal periods ending July 2026 and January 2027. The expected distribution yield from the anonymous partnership interest is 7.0%, providing medium-term income throughout the contract period ending February 2033.
Key Facts
Disposition Decision Date: December 4, 2025
Buyer: Jinushi–KJRM GK
Total Disposition Price: JPY 11,372 million
Total Book Value: JPY 9,503 million
Estimated Gain on Sale: JPY 1.7 billion
Scheduled Disposition Dates:
1st Closing: March 17, 2026
2nd Closing: October 30, 2026
IIF Izumiotsu e-shop Logistics Center (Land Leasehold)
Disposition Price: JPY 4,730 million
Appraisal Value: JPY 4,730 million
Location: 8-1 Nagisa-cho, Izumiotsu City, Osaka Prefecture
IIF Hannō Manufacturing Center (Land Leasehold)
Disposition Price: JPY 3,130 million
Appraisal Value: JPY 3,130 million
Location: 3-8 Akadadai, Hannō City, Saitama Prefecture, and others
IIF Higashimatsuyama Gas Tank Maintenance Center (Land Leasehold)
Disposition Price: JPY 832 million
Appraisal Value: JPY 832 million
Location: 75-1 Niisato, Higashimatsuyama City, Saitama Prefecture
IIF Kobe Nishi Logistics Center (Land Leasehold)
Disposition Price: JPY 2,680 million
Appraisal Value: JPY 2,680 million
Location: 10-4 Mitsugaoka 4-chome, Nishi Ward, Kobe City, Hyogo Prefecture