Industrial & Infrastructure Fund Invests in Silent Partnership Backed by Factory Land in Kanda and Moka

Industrial & Infrastructure Fund Investment Corporation announced on November 11, 2026, that it will acquire a silent partnership equity interest backed by the land under two automotive parts factories. Its investment in AY GK, the operator, will be JPY 100 million, equivalent to 1.4% of the total silent partnership investment of JPY 7.2 billion. The investment is scheduled for November 12 and will be funded with cash on hand. AY GK plans to acquire the trust beneficiary interests in the two land sites as trust assets for JPY 17.7 billion on November 13.

The underlying assets are Kyushu Techno Metal Head Office Factory (Land) in Kanda, Fukuoka Prefecture, and Mirai Casting Moka Factory (Land) in Moka, Tochigi Prefecture. The site areas are approximately 101,000 tsubo (approx. 3,593,900 sq. ft.) and approximately 49,000 tsubo (approx. 1,743,600 sq. ft.), respectively, and both are in exclusive industrial zones. The total appraisal value is JPY 21.3 billion, representing an unrealized gain of 20.3% relative to AY GK's scheduled acquisition price.

Both sites are scheduled to be leased to Mirai Casting Holdings, which took over the automotive casting business of Proterial (formerly Hitachi Metals) in January 2026. The Kanda factory manufactures heat-resistant exhaust components for large commercial vehicles and construction machinery, as well as exhaust gas purification filters. The Moka factory is a base for the integrated production of automotive chassis and drivetrain parts, from casting to machining. Both are expected to be under fixed-term business land lease agreements with a term of 49 years and 11 months, which in principle cannot be canceled for 30 years. Rent will be automatically revised every three years in line with changes in the consumer price index (excluding fresh food), under a mechanism that does not allow it to fall below the pre-revision rent.

AY GK's funding consists of JPY 11.7 billion in non-recourse loans and JPY 7.2 billion in silent partnership investments, with three major domestic institutional investors accounting for 98.6% of the investment. Asset management will be handled by KJRM Private Solutions, a group company of KJR Management, the asset manager of Industrial & Infrastructure Fund Investment Corporation. Industrial & Infrastructure Fund Investment Corporation holds preferential negotiation rights to purchase the trust beneficiary interests until May 13, 2031. The assumed profit distribution yield is 6.3%.

Key Facts

• Acquisition Overview
• • Asset Acquired: Silent partnership equity interest with AY GK as operator
  • Acquirer: Industrial & Infrastructure Fund Investment Corporation (asset manager: KJR Management)
  • Investment Amount: JPY 100 million (1.4% of the total silent partnership investment of JPY 7.2 billion)
  • Contract Date: November 11, 2026
  • Investment Date: November 12, 2026 (scheduled)
  • Term of Silent Partnership Agreement: Until November 13, 2031
  • Preferential Negotiation Rights: For the purchase of the trust beneficiary interests, until May 13, 2031
  • Assumed Profit Distribution Yield: 6.3%
  • Operator's Scheduled Acquisition Price of Trust Beneficiary Interests: JPY 17.7 billion (scheduled acquisition date: November 13, 2026)
  • Appraisal Value: JPY 21.3 billion (total of the two sites; as of October 1, 2026; Japan Real Estate Institute)
  • Non-Recourse Loans: JPY 11.7 billion
• Underlying Assets Overview
• • Property Name: Kyushu Techno Metal Head Office Factory (Land)
  • • Location: 35-1 Nagahama-cho, Kanda-machi, Miyako-gun, Fukuoka Prefecture (lot number)
    • Zoning: Exclusive industrial zone (port area)
    • Site Area: Approximately 100,729 tsubo (approx. 3,584,200 sq. ft.)
    • Appraisal Value: JPY 15.5 billion
    • Lessee: Mirai Casting Holdings Co., Ltd. (scheduled)
    • Agreement: Fixed-term business land lease agreement (November 13, 2026 to October 12, 2076; scheduled)
  • Property Name: Mirai Casting Moka Factory (Land)
  • • Location: 11-1 Kinugaoka, Moka, Tochigi Prefecture, and others (lot numbers)
    • Zoning: Exclusive industrial zone
    • Site Area: Approximately 49,289 tsubo (approx. 1,753,900 sq. ft.) (including private road portion of approximately 41 tsubo (approx. 1,500 sq. ft.))
    • Appraisal Value: JPY 5.8 billion
    • Lessee: Mirai Casting Holdings Co., Ltd. (scheduled)
    • Agreement: Fixed-term business land lease agreement (November 13, 2026 to October 12, 2076; scheduled)