ARCH Capital is pleased to announce that it has entered into a joint venture with Mitsubishi Estate for the development of a modern logistics facility in Taoyuan City, Taiwan. This collaboration further cements ARCH Capital’s commitment to expanding its logistics footprint across the Asia Pacific region.

 

 

Taoyuan City is a key logistics hub of Taiwan, and the area in which the main international airport of Taiwan is located. It is situated approximately 35 km from Taipei and services all of Northern Taiwan. This catchment accounts for approximately 50% of Taiwan’s population and is coveted amongst occupiers. The new facility will provide critical space in the area, enhancing the logistics offerings and meeting the growing demand for high-quality storage solutions.

 

The new Taoyuan City property will be a large-scale, multi-story rental facility, spanning approximately 64,306 square meters. It will feature four storage floors and four mezzanine floors, offering cold, temperature-controlled, and dry storage options, accessible via a spiral ramp system. The project is illustrative of ARCH Capital's commitment to Environmental, Social, and Governance (ESG) standards, and is built to generate over 50% of its total electricity consumption through on-site solar panels, significantly reducing its operating costs.

 

“This collaboration with Mitsubishi Estate is a testament to the continued confidence of foreign institutional capital in the Taiwan real estate market”, said Jonathan Umali, Chief Investment Officer at ARCH Capital. “Logistics has been a strong focus for ARCH Capital across the Asia-Pacific region. The exponential growth of the e-commerce sector in various markets is reshaping its associated supply chains. We aim to invest and build logistics facilities in locations where we see improved connectivity, and where there is limited to no supply that meets the quality and safety standards of evolving occupiers”, Jonathan added.

 

James Chou, Senior Managing Director at ARCH Capital, and a veteran investor in Taiwan, highlighted the robust market dynamics: “Taiwan has been a world leader in ICT, electronic parts and components manufacturing, leading to an upsurge in FDI inflows in recent years. The country experienced a tremendous GDP growth of over 50% this past decade, and a corresponding increase in income per capita. As a result, the e-commerce sector has grown at nearly 10% per annum, driving strong demand for the logistics space. What makes logistics facilities additionally attractive is the short build time, resulting in attractive returns.” 

 

The joint venture follows the success of ARCH Capital’s earlier investment and development of the Halo 捷立 mixed-use logistics facility in Taoyuan City. Halo 捷立 is a newly built multifunctional cold storage facility of nearly 61,000 square meters. It was constructed within its budget during the Covid-19 pandemic, and completed ahead of schedule. The project is nearly fully occupied, and attracted one of Asia's largest F&B production companies, e-commerce companies, a large convenient store chain, and other renowned tenants.

 

ARCH Capital has invested in Taiwan since early 2017, across a diversified range of asset classes, ranging from residential to commercial retail and logistics. The firm has a team of experienced investment and asset management professionals on the ground, allowing it to source off market deals, to actively manage and develop the asset during the holding period, and to utilize diverse exit channels.

 

About ARCH Capital Management

ARCH Capital Management is a specialized real estate private equity firm that focuses on delivering superior risk-adjusted returns in Asia Pacific. ARCH was established in 2006, and has a current AUMA of US$6.5 Bn. Throughout its 18-year history, the firm has developed an infrastructure across 10 regional offices, and constructed a portfolio with a GAV of US$14bn across funds vehicles, joint ventures, co-investments, and separate accounts. The platform is management-owned and operated, and emphasizes strong alignment with stakeholders through rigorous corporate governance, responsible investment practices, and a culture of discipline and operational transparency. 

 

About Mitsubishi Estate

Mitsubishi is a publicly listed conglomerate, and one of the largest real estate developers in Asia. Mitsubishi has robust knowledge of, and deep relationships across the region’s real estate markets, and has been expanding their business in Taiwan since 2013. ARCH is delighted to partner with strong regional industry participants to continue to build its capabilities and investment exposure across the Asia Pacific region.

Contact us
Should you have any questions, please do not hesitate to contact us.

 

Jonathan Umali
Chief Investment Officer

 

ARCH Capital Management Company Limited

1203-05, Champion Tower, 3 Garden Road, HONG KONG

T: +852 2287 4680

Website: www.archcapital.net