Kenedix Retail REIT Corporation (KRR) announced that Kenedix Real Estate Fund Management Inc., the asset manager for KRR, has decided to acquire the following property. Type of acquisition: Real estate. Property name: Shinjuku Nishiochiai Distribution Center. Acquisition price: JPY 810,000,000. Appraisal NOI yield: 4.3%. Date of contract: January 10, 2020. Acquisition date: January 10, 2020. Acquisition funds: Cash on hand. Settlement method: Payment in full at settlement. The acquisition is made to diversify and enhance the portfolio to realize the growth of asset size and secure stable revenues, in accordance with KRR's investment targets and policies as set forth in its Articles of Incorporation. KRR makes focused investment in shopping centers for daily needs, but it has expanded its investment targets to distribution centers. The property is the first logistics facility in Shinjuku ward in the J-REIT market. In acquiring the distribution center, KRR especially evaluated the following points. Highly scarce urban distribution center for last-mile deliveries in a densely populated area. The property is located in a densely populated area in Shinjuku Ward. In the vicinity of the facility, warehouse space suitable for last-mile delivery is scarce. It is expected that the location of the facility will become even more important in the future along with e-commerce penetration. Most of the last-mile distribution centers currently have warehouse space in a corner of buildings, but Shinjuku Nishiochiai Distribution Center integrates warehouse space with truck yards. From this point, this facility is highly scarce and has optimal facility specifications as a last-mile distribution center. Currently, a major delivery company, Yamato Transport Co. Ltd., is the tenant of the facility. Among Yamato Transport's urban distribution centers, there are only a limited number of centers with truck yards, and there are few facilities with such truck yards in the vicinity. Therefore, it is considered to be an important facility for Yamato Transport Co. Ltd. In addition, there is strong demand for logistics facilities in urban areas, and a variety of tenant candidates can be assumed for the facility, including competitors in the same industry, e-commerce operators, beverage vendors, and self-storage.