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Fukuoka REIT Announces JPY 7.6 Billion Asset Replacement Including Fukuoka Logistics Facility

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Fukuoka REIT Announces JPY 7.6 Billion Asset Replacement Including Fukuoka Logistics Facility

Fukuoka REIT Announces JPY 7.6 Billion Asset Replacement Including Fukuoka Logistics Facility

Fukuoka REIT Corporation announced on October 20, 2026, that it will acquire a real estate trust beneficiary interest (50% quasi-co-ownership interest) in LOGICITY Koga, a logistics facility in Koga City, Fukuoka Prefecture, and a silent partnership equity interest in FRC3 GK, whose trust property is TRIAS, a retail facility in Hisayama-machi, Kasuya-gun, Fukuoka Prefecture. At the same time, it will sell Kumamoto East Front Building, an office building in Chuo-ku, Kumamoto.

Completed in 2023, LOGICITY Koga is a four-story multi-tenant logistics facility with a gross floor area of approximately 13,530 tsubo (approx. 481,400 sq. ft.). The seller is FJ Private REIT Investment Corporation, an unlisted open-ended REIT managed by the Fukuoka Jisho Group, the sponsor of the asset manager. The scheduled acquisition price is JPY 4.7 billion, and the appraisal NOI yield on the scheduled acquisition price is approximately 5.4%. The acquisition is scheduled for December 28, 2026.

TRIAS is a large retail facility anchored by Costco Hisayama Warehouse, Costco's first store in Japan, and United Cinemas. FRC3 GK plans to acquire the trust beneficiary interest for JPY 10.4 billion on December 16, 2026, and the REIT will invest JPY 1.356 billion, equivalent to approximately 33.3% of the total silent partnership and other investments. With the investment, the REIT will be granted preferential negotiation rights for the acquisition of the trust beneficiary interest.

Completed in 1993, Kumamoto East Front Building is an eight-story building with an occupancy rate of 100% (as of the end of August 2026). The REIT acquired it in March 2023 for JPY 1.45 billion. The scheduled sale price is JPY 1.509 billion, and the appraisal NOI yield on the scheduled sale price is approximately 5.5%. The buyer is a domestic operating company whose name has not been disclosed, and delivery is scheduled for November 30, 2026.

The REIT decided to sell Kumamoto East Front Building because it is the second-oldest property in its portfolio, taking into account factors such as future growth potential. On the acquisition side, it valued LOGICITY Koga for its new construction, which will help lower the portfolio's average age, and its access to both the Fukuoka and Kitakyushu metropolitan areas. For TRIAS, it valued the fact that variable rent accounts for approximately 35% of total rent and the value-add potential offered by its site of approximately 250,000 sq. m (approx. 2,691,000 sq. ft.).

With this asset replacement, the REIT's asset size on an acquisition price basis will increase from approximately JPY 230.8 billion to approximately JPY 234.0 billion, and the average age of the overall portfolio will decrease from 20 years and 11 months to 20 years and six months.

Acquisition Property Overview

  • Property Name: LOGICITY Koga
  • Buyer: Fukuoka REIT Corporation
  • Seller: FJ Private REIT Investment Corporation
  • Acquired Asset: 50% quasi-co-ownership interest in real estate trust beneficiary interest
  • Scheduled Acquisition Price: JPY 4.7 billion
  • Appraised Value: JPY 5.35 billion (as of October 1, 2026, by JLL Morii Valuation & Advisory K.K.)
  • Appraisal NOI Yield (based on scheduled acquisition price): Approx. 5.4%
  • Contract Date: October 20, 2026
  • Scheduled Acquisition Date: December 28, 2026
  • Location: 105-36 Aoyagimachi, Koga City, Fukuoka Prefecture
  • Nearest Interchange: Approximately six minutes by car from Koga IC on the Kyushu Expressway
  • Completion: March 2023
  • Number of Floors: 4F (steel-reinforced concrete and steel-frame construction)
  • Use: Warehouse
  • Area: Site area of approximately 15,512 tsubo (approx. 552,000 sq. ft.) / Gross Floor Area of approximately 13,530 tsubo (approx. 481,400 sq. ft.)
  • Number of Tenants: 2 (warehouse)
  • Occupancy: 100.0% (as of the end of August 2026)
  • Trustee: Mitsubishi UFJ Trust and Banking Corporation

Acquired Asset Overview (Silent Partnership Equity Interest)

  • Name: Silent partnership equity interest in FRC3 GK
  • Investor: Fukuoka REIT Corporation
  • Operator: FRC3 GK
  • Scheduled Investment Amount: JPY 1.356 billion (approximately 33.3% of the total silent partnership and other investments of JPY 4.068 billion)
  • Contract Date: October 23, 2026 (scheduled)
  • Scheduled Investment Date: December 14, 2026
  • Term of Silent Partnership Agreement: Until December 31, 2033
  • Trust Property: TRIAS
    • Operator's Scheduled Acquisition Price: JPY 10.4 billion
    • Operator's Scheduled Acquisition Date: December 16, 2026
    • Appraised Value: JPY 12.38 billion (as of July 31, 2026, by Japan Valuers Co., Ltd.)
    • Location: 1111 Oaza-Yamada, Hisayama-machi, Kasuya-gun, Fukuoka Prefecture
    • Nearest Interchange: Approximately 5 km from Fukuoka IC on the Kyushu Expressway
    • Number of Floors: 1F, among others (steel-frame construction, among others)
    • Use: Retail, among others
    • Area: Site area of approximately 72,035 tsubo (approx. 2,563,200 sq. ft.) (including leasehold and other rights of approximately 70,169 tsubo (approx. 2,496,800 sq. ft.)) / Gross Floor Area of approximately 24,326 tsubo (approx. 865,600 sq. ft.)
    • Number of Tenants: 3 (102 end tenants)
    • Occupancy: 96.3% (as of the end of August 2026)
    • Master Lease and Property Management Company: TRIAS Management Co., Ltd. (scheduled)
    • Trustee: Sumitomo Mitsui Trust Bank, Limited

Disposition Property Overview

  • Property Name: Kumamoto East Front Building
  • Seller: Fukuoka REIT Corporation
  • Buyer: Undisclosed (domestic operating company)
  • Transferred Asset: Real estate
  • Scheduled Sale Price: JPY 1.509 billion
  • Appraised Value: JPY 1.5 billion (as of August 31, 2026, by Tanizawa Sogo Appraisal Co., Ltd.)
  • Appraisal NOI Yield (based on scheduled sale price): Approx. 5.5%
  • Book Value: JPY 1.495 billion (as of the end of August 2026)
  • Contract Date: October 30, 2026 (scheduled)
  • Scheduled Sale Date: November 30, 2026
  • Location: 1-5-15 Shinyashiki, Chuo-ku, Kumamoto, among others (lot number)
  • Nearest Station(s): Approximately four-minute walk from Kuhonji Kosaten Stop on the Kumamoto City Tram / Approximately five-minute walk from Suidocho Stop on the Kumamoto City Tram
  • Completion: December 1993
  • Number of Floors: 8F (steel-frame and steel-reinforced concrete construction)
  • Use: Office / Garage
  • Area: Site area of approximately 319 tsubo (approx. 11,400 sq. ft.) / Typical floor plate of approximately 128 tsubo (approx. 4,600 sq. ft.) / Gross Floor Area of approximately 1,286 tsubo (approx. 45,800 sq. ft.)
  • Number of Tenants: 10
  • Occupancy: 100.0% (as of the end of August 2026)
  • Acquisition Date: March 28, 2023 (acquisition price: JPY 1.45 billion)

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