TOKYO—Mitsui O.S.K. Lines, Ltd. (MOL), under the leadership of President & CEO Takeshi Hashimoto, has announced its entry into the industrial real estate sector in Australia through an investment in a fund managed by Hankyu Hanshin Properties Australia Pty Ltd (HHPAUS). This strategic move marks MOL’s first foray into the Australian industrial real estate market, focusing on logistics properties in four key cities: Sydney, Melbourne, Brisbane, and Perth.
This investment aligns with MOL’s broader strategy to diversify its business portfolio beyond traditional shipping. The company will acquire interests in 11 logistics properties spread across these four major cities and engage in development and leasing operations. The initiative will be executed in collaboration with ESR Group Limited, APAC’s largest real asset manager, which has $156 billion in assets under management globally, and other strategic partners.
MOL’s entry into the industrial real estate market in Australia is significant, given the rising demand for logistics properties fueled by the surge in e-commerce. As part of this venture, MOL will focus on properties with advanced infrastructure, such as air conditioning and automated refrigeration/freezing systems. These facilities, which encompass both existing logistics hubs and new developments, are expected to attract stable rental demand due to their strategic locations and high-spec features.
Daibiru Corporation, an MOL Group company, has already established a presence in Australia with its office building development business. With this new investment in industrial real estate, MOL aims to build on that experience and generate stable, long-term earnings in a sector poised for growth. The properties are spread across major logistics hubs and offer premium features like substantial floor space and ceiling height, making them ideal for various industrial tenants.
This strategic expansion aligns with MOL’s “BLUE ACTION 2035” management plan, which aims to broaden the company’s business scope beyond the volatile shipping market. By increasing the share of non-shipping, stable revenue businesses, MOL is working to create a more balanced and resilient business portfolio. The plan emphasizes regional strategies and leverages the company’s global network to establish a robust foundation for its growth as a global social infrastructure group.
The new investment in Australia’s industrial real estate market supports MOL’s goals of geographic diversification and revenue stability. As the demand for logistics space continues to rise, particularly with the ongoing growth of e-commerce, MOL’s decision to enter this market reflects a forward-looking approach. By partnering with key players like ESR Group Limited and utilizing advanced logistics facilities, MOL is positioning itself to capitalize on the burgeoning opportunities in the sector.
Overall, this move not only strengthens MOL’s presence in Australia but also adds to its strategic efforts to diversify its business portfolio globally. With a mix of existing properties and newly developed facilities, MOL is set to gain valuable expertise and expand its footprint in the Australian market, signaling a new chapter in its growth journey.
