(Bloomberg) -- PAG, the Hong Kong-based alternative asset manager, has purchased a logistics center in central Japan from real estate developer Hines, according to people familiar with the matter.

The transaction covers two warehouses near the Port of Nagoya, the busiest port in Japan, and is valued at around ¥65 billion to ¥66 billion ($429 million to $435 million), one of the people said.

One of the facilities, which Hines built after it acquired the development site in 2022, has more than 218,000 square meters (2.3 million square feet) of space across four floors, making it one of the largest warehouse transactions in Japan. That deal closed last week after construction was completed, while the transaction for a smaller 25,000 square meter warehouse nearby closed last year. 

A Hines spokesman confirmed the deal took place, without giving further details. PAG declined to comment. 

Japan has been one of the few active commercial real estate markets in the world as local interest rates stay low, ensuring positive returns. The country’s logistics sector has been particularly active, with transaction volume increasing 23% last year, according to MSCI Real Assets data. 

Nagoya is also Japan’s biggest port for automobile exports. It’s in Aichi Prefecture, home to industrial giants including Toyota Motor Corp. 

Houston-based Hines opened an office in Japan in 2017 and expanded the operations in 2020 to include development and acquisitions. The warehouse project was the second deal the developer sourced in the country. 

PAG, more known for its private equity deals in Asia, has a property arm that originated from a merger with a real estate fund in Japan. In 2022, the firm bought Huis Ten Bosch Co., a Dutch-themed resort near Nagasaki, from Japanese travel agency HIS Co.

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