Logistics fund falls on radar of real estate manager Croesus

Croesus Group, an Asian real estate manager, is evaluating another fund with logistics properties after listing its first trust holding Japanese shopping centres in Singapore last year.

Croesus had access to 24 to 36 facilities in Japan and the United States and might seek to raise US$500 million to US$600 million through the public or private markets as early as the second quarter of next year, co-founder Jeremy Yong said. The company, with a presence in Japan, Singapore and China, also saw opportunities in data centres, solar farms and hospitality, he said.

"Our focus is on income-generating asset space, any assets that generate a stabilised yield, robust income streams and tangible dividends," Yong said. "That's where we want to be."

Croesus Retail Trust, which holds malls in Japan including Luz Shinsaibashi in Osaka and Mallage Shobu in Tokyo, debuted in Singapore in May last year. The trust has increased its number of assets to seven from four, with the value rising 55 per cent to 82 billion yen (HK$5.8 billion) since the listing.

Dividend per unit could increase 4 per cent in 2016 as rent renewals would be at higher rates, Yong said. Some tenants at the Mallage Shobu mall had agreed to rent rises exceeding 20 per cent, he said.

The trust agreed to buy One's Mall in Tokyo earlier this month and might resume acquisitions in 2015, Yong said. He may also expand outside Japan a few years later.

While Croesus had been looking to manage hospitality assets in Japan, the selection of Tokyo to host the 2020 Olympic Games had led to soaring real estate prices, Yong said.

"After retail, we had planned hospitality assets", but the hotel properties were too expensive, he said, adding that his firm was exploring opportunities in serviced residences as well.

Outside Japan, Yong may build logistic facilities in Taiwan and Malaysia, and data centres in Europe.