A Cross-Border Deal Originating from DBJ's Kyushu Branch and Expanding Across APAC

In Singapore, the importance of logistics facilities continues to grow as the country strengthens its role as an ASEAN logistics hub, supported by excellent port access and a stable institutional environment. With the expansion of e-commerce and ongoing supply chain restructuring, demand for high-quality logistics facilities remains robust. At the same time, the government's strict control over land supply has made prime logistics assets increasingly scarce.

The subject property of this transaction, 8 Jurong Pier Road, is located in the Jurong District in western Singapore and benefits from excellent access to ports and major industrial areas. With multiple international logistics companies as tenants, high occupancy, and stable lease agreements, the property was evaluated as a revenue-generating asset suitable for long-term ownership.

This cross-border transaction originated when DBJ's Kyushu Branch ‒ maintaining a long-standing relationship with Fukuoka Jisho ‒ received a specific consultation from the company regarding the overseas investment. "Fukuoka Jisho has built its business as a comprehensive real estate developer centered on the development and management of offices, commercial facilities, and residential properties in the Kyushu region. In recent years, the company has also been considering overseas investment, " says Kotaro Shimono, Vice President at DBJ's Kyushu Branch. Based on this strategy, the branch began establishing a framework to support overseas transactions as a natural extension of its domestic relationship.

Meanwhile, secondment of a member of the Global Logistics Office (part of DBJ's Corporate Finance Department, Division 3) to DBJ Singapore enabled the DBJ Group to deepen expertise and source opportunities in the logistics sector in Asia. This logistics-focused collaboration, in turn, enabled close engagement with ESR, a leading Asia-Pacific real asset owner and manager focused on logistics real estate and data centers, and an existing Corporate Finance Department, Division 3 client.

With in-market expertise in Japan and Singapore as part of its pan-APAC platform, ESR acted as both the seller and asset manager for the subject property. As DBJ and ESR continued to deepen the relationship with senior management in Singapore, discussions progressed toward potential future non-recourse real estate financing. As a result of these coordinated efforts - customer engagement by the domestic relationship manager and deal sourcing and relationship building at DBJ's overseas base - ESR awarded the DBJ Group the financing mandate, advancing the transaction. After that, DBJ's Corporate Finance Department, Division 3 led the industry analysis, while its Real Estate Finance Department supported asset valuation and structuring. DBJ Singapore took charge of local negotiations, due diligence, and loan execution, leading the transaction through close cross-group collaboration.

Rapid Cross-Divisional Decision-Making and Teamwork Enabled by Personnel Rotation

A key factor in completing this project was the rapid decision-making across divisions and strong teamwork formed through personnel rotations within the DBJ Group. By enabling specialized personnel to participate in discussions in real time alongside local teams, coordination and decision-making across departments became more seamless. The team was able to proceed with agility and confidence.

"This financing was a first-time endeavor for all four divisions and required careful consideration. While we had a solid understanding of the Singapore market through prior transactions, issues such as real estate legal frameworks, regulatory approvals - particularly leasehold continuity on state-owned land - and the feasibility of a non-recourse finance structure were major discussion points," recalls Tae Yamada, Joint General Manager of DBJ Singapore.

Tae Yamada
Joint General Manager, DBJ Singapore Limited

At DBJ, the Real Estate Finance Department had been exploring ways to expand its non-recourse real estate finance expertise ‒ previously developed in North America - to other regions. "In Singaporeʼs heavily government-influenced market, comprehensively organizing lender rights was far from straightforward. Legal frameworks, documentation, and valuation posed significant challenges," says Christopher Rei Moran, Associate in the Real Estate Finance Department. By leveraging the specialized expertise of domestic teams for documentation, the project achieved seamless collaboration across borders. Furthermore, information on local market standards collected by DBJ Singapore proved to be invaluable in coordinating internal processes, including credit rating requirements for loan execution.

At the same time, DBJ Singapore faced challenges in cultivating advance expertise locally, as stricter work visa regulations limited the number of Japanese expatriates it could deploy. To address this, DBJ's Corporate Finance Department, Division 3 - seeking to expand its operations in the growing Asian market - used a short-term training program to dispatch staff from DBJ's head office. Through the three-month assignments, specialized expertise was brought into Singapore, enabling close collaboration with local members. This approach successfully enhanced deal execution capabilities while simultaneously advancing human resource development.

This structure not only contributed to organizational success but also led to the development of local members. "I myself had little knowledge or experience in the field of logistics. But after arriving locally, the trainee from Corporate Finance Department, Division 3 actively arranged meetings with many clients and fund managers. In preparing credit materials, I had the opportunity to learn about asset finance, which is not often dealt with in Singapore. I feel that the training program has broadened my skills and contributed greatly to my professional growth," stresses DBJ Singapore Manager Tan Yan Fu.

Tan Yan Fu
Manager, DBJ Singapore Limited

Regulatory approvals for real estate financing were also handled efficiently by working through law firms well-versed in the local conditions, considering multiple scenarios, and maintaining close coordination with ESR. As a result, approvals were obtained within a short period (approximately one week).

The greatest value that the DBJ Group delivered through this financing lies in its "collective strength" ‒ the integration of customer relationships, industry expertise, regional knowledge, and financial capabilities. "The relationship management capabilities of the Kyushu Branch, the regional expertise of DBJ Singapore, the expertise of the Real Estate Finance Department .and the industry expertise of the Global Logistics Office were combined in an organic manner, enabling us to realize projects that would not have been possible on our own. Behind this is the rapid decision-making and strong teamwork across the organization that was fostered through DBJ's personnel rotations. I believe this is the essential value that the DBJ Group will demonstrate not only in this loan but also in future cross-border projects," says Yuki Ogawa, who was then the head of the Global Logistics Office (currently deputy general manager of the Corporate Planning Department). Indeed, when challenges arose on the Singapore side, the Kyushu Branch demonstrated agility by engaging directly with Fukuoka Jisho, helping the team overcome various difficulties even in a highly uncertain financing environment.

Looking ahead, the ASEAN region is expected to see continued growth in the real estate sector, including logistics, data centers, and industrial infrastructure. "Beyond providing financing to support overseas investment by Japanese companies, the DBJ Group aims to strengthen its structuring capabilities by integrating domestic and international expertise and effectively supporting collaboration with global partners. Building on the insights gained from this non-recourse real estate transaction, we hope to contribute to cross-border value creation not only in Singapore but across APAC, serving as a bridge between Japanese companies and overseas partners," concludes DBJ Singapore's Yamada.