Industrial & Infrastructure Fund Sells Shinagawa Data Center and Acquires Maebashi Plant
Industrial & Infrastructure Fund Investment Corporation decided on August 17, 2026 to sell IIF Shinagawa Data Center in Futaba 2-chome, Shinagawa-ku, for JPY 9.5 billion and to acquire IIF Maebashi Manufacturing Center in Maebashi, Gunma Prefecture, for JPY 8.0 billion. The Shinagawa property will be transferred to a domestic operating company and handed over in two stages, in January and February 2027. The Maebashi property will be acquired from Sanden, a manufacturer of compressors for automotive air conditioning, with the acquisition scheduled for October 1, 2026.
IIF Shinagawa Data Center has been held by the REIT since 2012. The planned disposition price exceeds book value by about 75% and appraisal value by about 27%. A 30% co-ownership interest will be transferred in January 2027 and the remaining 70% in February of the same year. The NOI yield is projected at approximately 3.9%.
IIF Maebashi Manufacturing Center is the property currently known as Sanden Forest / Akagi Plant, a core manufacturing base for Sanden and for SDRS, a group company that manufactures and sells vending machines and display cases. The three main buildings have a combined gross floor area of approximately 36,321 tsubo (approx. 1,292,400 sq. ft.) and were completed between 2002 and 2006. Sanden will continue to occupy the property after the transfer under a 15-year fixed-term building lease. The NOI yield is projected at 7.8%.
The REIT decided to sell the Shinagawa data center because the 34-year-old property is expected to require large-scale capital expenditures in the future, while the current master lease agreement leaves limited room for rent increases. At the Maebashi property, by contrast, rents will be revised every three years in line with the consumer price index (CPI), under a mechanism designed so that the revised rent does not fall below the previous level. The REIT also plans to deploy proceeds from the Shinagawa sale into acquisitions of assets that strengthen inflation resilience, aiming through future acquisitions and dispositions to improve the profitability and inflation resistance of its portfolio.
Disposition Property Overview
- Property Name: IIF Shinagawa Data Center
- Seller: Industrial & Infrastructure Fund Investment Corporation
- Buyer: Domestic operating company (undisclosed)
- Location: 2-9-15 Futaba, Shinagawa-ku, Tokyo
- Contract Date: August 17, 2026
- Scheduled Disposition Date: January 12, 2027 (30% co-ownership interest) / February 25, 2027 (70% co-ownership interest)
- Planned Disposition Price: JPY 9.5 billion
- Book Value: JPY 5.444 billion (as of January 31, 2026)
- Appraisal Value: JPY 7.48 billion (as of January 31, 2026; Japan Real Estate Institute)
- Appraisal NOI Yield: Approximately 3.9%
- Completion: August 1989
- Number of Floors: 4F (steel-reinforced concrete construction)
- Area: Gross Floor Area of approximately 5,913 tsubo (approx. 210,400 sq. ft.)
Acquisition Property Overview
- Property Name: IIF Maebashi Manufacturing Center
- Buyer: Industrial & Infrastructure Fund Investment Corporation
- Seller: SANDEN CORPORATION
- Location: 7-1 Nakanosawa, Kasukawa-cho, Maebashi, Gunma Prefecture
- Contract Date: August 17, 2026
- Scheduled Acquisition Date: October 1, 2026
- Planned Acquisition Price: JPY 8.0 billion
- Appraisal Value: JPY 12.2 billion (as of July 1, 2026; Japan Real Estate Institute)
- Appraisal NOI Yield: 7.8%
- NOI Yield After Depreciation: 6.6%
- Completion: Building 1, March 2002 / Building 2, March 2003 / Building 3, September 2006
- Number of Floors: Building 1, 2F (steel-frame construction) / Building 2, 1F (steel-frame construction) / Building 3, 1F (steel-frame construction)
- Use: Building 1, plant and office / Building 2, plant / Building 3, warehouse
- Area: Site area of approximately 194,767 tsubo (approx. 6,930,400 sq. ft.) / Gross Floor Area of approximately 36,321 tsubo (approx. 1,292,400 sq. ft.)
- Number of Tenants: 2
- Tenants: SANDEN CORPORATION / SDRS Co., Ltd.
- Occupancy: 100.0%
