Ares Management said its real estate arm raised 612 billion yen ($4 billion) for Japan Logistics Development Partners V LP, its fifth Japan logistics development fund and the unit’s largest closed-end institutional fundraise. The fund reached its hard cap and is nearly 50% larger than its 2021 predecessor. It will primarily develop modern logistics facilities in Greater Tokyo, Greater Osaka and Nagoya. CBRE has projected that rents for large multi-tenant logistics facilities in Japan’s four major metropolitan areas will rise by late 2027 as demand for modern logistics space grows. Investors include pension funds, sovereign wealth funds, insurers and financial institutions from North America, Asia-Pacific, Europe and the Middle East. Canada Pension Plan Investment Board committed 150 billion yen as a cornerstone investor and has backed every Japan logistics fund since their launch in 2011. The fund has 1.7 trillion yen in total investment capacity and has committed to projects representing about 450 billion yen in total investment.