Chicago-based real estate investment trust (REIT)
Jones Lang LaSalle Inc.
) wholly owned subsidiary LaSalle Investment Management is
contemplating the divestiture of a portfolio of warehouses in
Japan, according to a Bloomberg report.
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The properties, which include 9 storage buildings, are located in
Tokyo and Osaka and are valued at around ¥85 billion ($902
million) by one of the prospective bidders, according to the
As a matter of fact, the industrial property market in Japan is
showing signs of stability. With a rise in demand for modern
storage facilities, the market for distribution centers are
recovering and vacancy rates are falling. Industrial REITs are
expanding their business in order to capitalize on the
opportunity and meet the improving property values and growing
institutional demand for quality properties.
For warehouses in Tokyo, the vacancy rate has decreased to 3.7%
in the fourth quarter of 2012 from as high as 20% in Sep 2009,
according to the report, which cited data from
CBRE Group Inc.
This rebound in the market for distribution centers has attracted
investors and several industrial REIT initial public offerings
(IPO) have come out recently. These stocks have gained
considerably since then.
These include the IPO of Nippon Prologis REIT Inc., which was set
) and that of Global Logistic Properties Ltd. (GLP), which is
partially-owned by the Government of Singapore Investment Corp.
We believe that if the sale off materializes, it would auger well
for Jones Lang LaSalle Inc.'s subsidiary, LaSalle Investment
Management, which would be able to strengthen its overall
Jones Lang LaSalle Inc. has a Zacks Rank #3 (Hold). However,
another REIT that is currently performing well and is worth a
Federal Realty Investment Trust
) that carries a Zacks Rank #2 (Buy).