#Japan #Panasonic #Dai-ichi Life #LogiSquare #Kyotanabe

Introduction

In a notable move towards strategic growth in the logistics sector, Dai-ichi Life Insurance Co., Ltd. has officially announced its equity investment in the 'LogiSquare Kyotanabe A' facility located in Kyotanabe, Kyoto Prefecture. This investment is part of a larger real estate fund established by Strategic Partners, a consolidated subsidiary of CRI, under the leadership of CEO Tadahide Kameyama. Dai-ichi Life is the primary investor in this fund, which has successfully garnered approximately 14.8 billion yen from multiple investors.

Background on Kyoto's Logistics Sector

As the demand for logistics services continues to rise in Japan, the sector faces several challenges, including operational inefficiencies due to dispersed locations and the aging of existing facilities. In response, there is a significant shift towards consolidating operations at state-of-the-art large-scale logistics hubs. The demand for highly functional logistics facilities is expected to remain strong in the near future.

The 'LogiSquare Kyotanabe A' stands out with its prime location, situated conveniently in southern Kyoto Prefecture. It provides easy access to the populous Osaka North Set area and central Kyoto, along with proximity to major highways such as the Shin-Meishin Expressway, Kyoto-Naas Highway, and the Second Keihan Road, facilitating deliveries throughout the Kansai region and beyond.

Features of the LogiSquare Kyotanabe A

The facility itself is an impressive four-story building, covering a total floor area of around 156,000 square meters. It boasts four rampways that allow direct access for large vehicles to the second to fourth floors, and each floor is equipped with truck berths on both sides, enabling simultaneous operations for over 200 trucks. These features significantly enhance the efficiency of logistics operations at the facility.

One key tenant set to benefit from this facility is Panasonic Operational Excellence Co., Ltd. Beginning in September 2025, Panasonic plans to consolidate nine of its existing logistics centers scattered throughout the Kansai area into this state-of-the-art facility. This move will provide Panasonic with a centralized group warehouse, enhancing operational efficiencies and streamlining logistics.

Dai-ichi Life's Strategic Goals

Dai-ichi Life’s investment strategy revolves around asset management leveraging insurance premiums to ensure stable long-term revenue. The company is committed to diversifying its real estate investment portfolio to include premier investment opportunities and various asset types. Given the burgeoning e-commerce market, the demand for high-function logistics facilities, like LogiSquare, is anticipated to grow. Dai-ichi Life continues to leverage its deep insights into real estate investment to assess optimal locations and specifications for logistics facilities, aiming to strike a balance between securing returns on investments and addressing the logistical challenges faced by the industry.

CRI's Contributions

CRI's business vision positions it as a leading player in the logistics real estate sector, specializing in the development, management, and operation of logistics facilities. Its key property brand, 'LogiSquare,' exemplifies its commitment to creating functional and versatile logistics spaces. To date, CRI has successfully developed 36 properties, amounting to a total area of approximately 1.37 million square meters (about 410,000 tsubo).

Through well-established relationships with diverse tenant companies, CRI is adept at meeting specific logistical needs, ensuring facilities boast both functionality and adaptability. Additionally, by incorporating developed properties into its operational funds, CRI reinforces its stock business expansion effectively.

Panasonic's Transition to LogiSquare

In statements regarding the relocation, Panasonic Operational Excellence emphasized the need to consolidate aging logistics centers, which included nine facilities serviced by the Shijonawate Logistics Center. Consolidation is driven by the need for cost reduction through system integration and the introduction of robotic technology to enhance operational efficiencies. The company has reported a 10% reduction in delivery routes and a 27% improvement in storage efficiency through effective space utilization.

Moreover, standardizing internal processes for various product lines and implementing paperless operations through mobile information terminals (PDA) have led to a 26% enhancement in productivity. This transition not only advances competition but also contributes significantly to improving labor conditions within the logistics sector.

Conclusion: A Step Forward for Logistics

As both Dai-ichi Life and CRI pave the way for enhanced logistics precision through the investment in LogiSquare Kyotanabe A, these initiatives showcase their commitment to overcoming current industry challenges. The focus on high-quality, centralized facilities is set to redefine operational capacities in the logistics landscape, positively impacting companies' overall efficiency and competitiveness. This investment marks another milestone in Japan's evolving logistics environment, aligning with the needs of the future.